The cost of a capacity shortage is
A) the reduction in margin that results from having to go to a backup source.
B) the margin that would have been generated if the capacity had been used for production.
C) the productivity increase generated when the capacity is used for production.
D) the sales potential of excess capacity kept in reserve for emergency production.
Answer: A
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Which of the following decisions is one of the three major, interrelated decisions concerning sales territories?
A) the skills required by salespeople B) the number of salespeople C) the monetary reward to be given to salespeople D) the products allocated to the salespeople
Jana and Annie enter into a written agreement whereby Jana promises to sell and Annie
promises to buy a certain parcel of land for $5,000. There is adequate consideration, the contract is legal and both parties have contractual capacity. The contract is fully performed by both parties on January 1. Which of the following best describes this contract as of January 2? A) Unilateral, implied, executory, valid B) Bilateral, express, executed, valid C) Unilateral, express, executed, valid D) Unilateral, express, executory, valid