Which one of the following statements typically describes 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

Repeat sale customers are more likely to make additional purchases in the future, thus decreasing the break-even probability compared to single sale customers. This means that the initial cost of acquiring the customer is spread over multiple purchases, making it easier to break even and generate profit.

Which One of the Following Statements Typically Describes the Break-Even