The Perth Copier Company is trying to decide on whether to use a company sales force or agents to reach its West Coast market. Establishing a sales office would cost $180,000. Salespeople would be paid $25,000 plus a 5 per cent commission. Each salesperson could handle about $1,000,000 in sales a year. Agents would be paid a flat 12 per cent commission on all sales. The Perth Copier Company is using_________ criteria to evaluate their major channel alternatives.
A) economic
B) qualitative
C) adaptive
D) control
E) territorial

Question

Quizplus · Accepted Answer

The Perth Copier Company is using economic criteria to evaluate their major channel alternatives. They are comparing the costs and benefits of using a company sales force versus agents. By weighing the costs of establishing a sales office and paying salespeople versus the flat commission rate for agents, they are using economic criteria to make their decision.

The Perth Copier Company Is Trying to Decide on Whether