Because agents are compensated only when they sell,based on a negotiated commission rate,the channel costs become fixed costs rather than variable.

Name: Because agents are compensated only when they sell,based on a negotiated commission rate,the channel costs become fixed costs rather than variable.
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Question

Quizplus · Accepted Answer

Channel costs are considered variable costs because they vary with the amount of product sold; the more products sold, the higher the commission costs.

Because Agents Are Compensated Only When They Sell,based on a Negotiated