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A Firm Finds That the Cost of a Single Field

Question 52

Multiple Choice

A firm finds that the cost of a single field sales call is over $150. Although 80 percent of its customers have an average order size of $1,500 or more, the other 20 percent have an average order size of $250 or less. To reduce its selling costs to the latter group, the firm should


A) grant seasonal discounts of 10 percent.
B) provide an extra 10 percent quantity discount on all orders.
C) utilize telemarketing.
D) charge an additional $100 fee on all orders below $500.

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