An insurance company is considering using independent sales agents who would receive 7 percent sales commission on sales or its own insurance salespeople who would receive 5 percent commission, salaries and benefits. Additionally, with a company sales force, sales administration costs would be incurred for a total fixed cost of $650,000 per year. At what level of sales would independent salespeople be less costly?
a) $650,000
b) $5,416,667
c) $32,500,000
d) $35,200,000
e) Cannot be calculated given the information provided
Answer: c
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Marketing Chapter 20
- If an online retailer lists shipping charges according to the dollar amount of merchandise purchased, you know that it is using _____ pricing.
- A(n) _____ discount is a deduction from list prices that applies to the buyer's total purchases made during a specific period and is intended to encourage customer loyalty.
- Home Depot's fall lawn mower sale is an example of which of the following pricing tactics?
- Which type of discount is a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill?
- "The unregulated financial derivatives market created a shadow banking system that performed some of the same functions as the real banking systemlong dash—but without the checks and balances that keep a banking system from spinning out of control." Which of the following lessons BEST supports this comment?
- What will the Dodddash-Frank bill do to ensure transparency in markets, hedge funds, and other financial products?
- What is the goal of the Volcker Rule in Dodddash-Frank?
- What is the task of the Bureau of Consumer Financial Protection within the Federal Reserve?
- Which of the following was created to monitor systemic risks that might affect a significant portion of the economy?
- _____ was established in 2010 in order to restructure and improve the finance industry by better monitoring systematic risk, safeguarding consumers, and more effectively examining market fluctuations.
- In 2006, David had a very low credit score, insufficient income, and no collateral to offer for a loan. Yet, when he applied, he was approved by YourMoney Bank for a loan to buy a house. Which of the following describes this loan?
- When demand drives prices of an asset far beyond its intrinsic economic value, what has been created?
- All The Best Financial recently developed an investment product where different types of debts, such as mortgages, are assembled together. All The Best's investment product exemplifies which of the following?
- Adding to the housing bubble, lenders increased which of the following to determine how much of a loan a borrower could receive based on the home's value?
- A ________ is an extreme deficiency of assets within an area of the economy during which businesses are not able to obtain enough funding to meet their operating requirements.
- A(n) ______ offers variable interest rates mortgages to consumers by creating attractive introductory rates which later rise dramatically.
- Which of the following is the best type of institution to use to set up a scholarship fund or other type of philanthropic giving?
- Which of the following are also called savings and loan associations?
- NFP Financial is a not-for-profit, member-owned cooperative that offers deposit accounts and lending services to customers and small businesses. Which of the following best describes NFP?
- Which of the following established the Federal Deposit Insurance Corporation?
- Which of the following help lenders review the solvency of borrowers?
- ______ deal primarily with providing financial services to corporations in international matters.
- DidItMyself Tools is interested in entering the Chinese market for selling its products. Which type of bank would be most helpful to DidItMyself as it embarks on its first international operation?
- ABC Toys is interested in acquiring World Toys, both of which are located in the United States. Which type of bank should ABC use for help with this acquisition?
- Which of the following offer a full menu of client services with an international reach?