Which contract increases the margin for the dealer as sales cross certain levels?
A)Buyback or returns contract
B)Revenue-sharing contract
C)Quantity flexibility contract
D)Threshold contract

Question

Quizplus · Accepted Answer

A threshold contract is a type of agreement where a certain level of sales must be reached before specific terms are awarded. In this case, the margin for the dealer increases as the sales cross a certain level, allowing for a higher profit for the dealer. The other contract types mentioned do not necessarily involve increasing dealer margins based on sales volume.

Which Contract Increases the Margin for the Dealer as Sales