Which one of the following statements is typically correct concerning the break-even probability of collection for repeat sale customers?
A) The break-even probability is higher than for single sale customers.
B) The break-even probability is lower than for single sale customers.
C) The break-even probability does not change between single sale and repeat sale customers.
D)Sales should never be refused for customers offering the potential of repeat sales.

Question

Quizplus · Accepted Answer

The break-even probability of collection for repeat sale customers is typically lower than for single sale customers. This is because the costs of acquiring the customer have already been incurred and there is usually a higher likelihood of receiving payment from a repeat customer. Refusing sales from potential repeat customers is not advisable as it could negatively impact future sales and customer loyalty.

Which One of the Following Statements Is Typically Correct Concerning