ABC’s of Relationship Selling, 13e (Futrell)
Chapter 14 Time, Territory, and Self-Management: Keys to Success
1) According to the Core Principles of Professional Selling, how you spend your time greatly
influences your level of sales success.
2) As per the text, one of the time management skills that can help sales professionals in
achieving success is spending time on low-priority tasks.
3) As per the text, one of the time management skills that can help sales professionals in
achieving success is having a systematic account for the outcomes you aim to achieve before
allocating time to achieve these outcomes.
4) The difference between cost of goods sold and sales is the net profit on sales revenue.
5) Break-even volume per hour = Cost per hour/Gross profit percentage
6) The break-even point for a territory for a month is $1,000. If the salesperson generates $1,000
of profit the territory’s direct costs are covered.
7) A professional salesperson should not study product materials during the waiting time at the
customer’s office.
8) Research has shown that a business lunch rarely leads to a sale.
9) Although it is useful to have lunch with a prospect or a client, dining alone can be very
productive for a professional salesperson.
10) A sales quota comprises a group of customers or a geographical area assigned to a
salesperson.
11) Sales territories can be used to obtain thorough coverage of the market.
12) Fewer overnight trips and more regular contact with productive customers can reduce sales
expenses as well as improve a firm’s sales-cost ratio.
13) Generally, it is a good idea to maximize the difference between the salesperson and the
customer being served to keep sales presentations fresh and interesting.
14) All companies segment their markets into sales territories.
15) Segmenting the market into territories can be very effective in industries like insurance and
retail.
16) A market with homogeneous needs and characteristics would best be suited for an
undifferentiated market approach.
17) In an undifferentiated selling approach, the salesperson uses multiple selling strategies in the
same market.
18) The 80/20 principle is a time management concept that favors a salesperson putting 80
percent of his time on planning and 20 percent on selling.
19) It is wise to use the account segmentation approach in a market with heterogeneous needs.
20) Multivariable account segmentation involves the use of one or more criterion to characterize
the organization’s account.
21) The majority of sales force resources should be invested in key accounts.
22) Sales call allocation is the time spent by the salesperson calling on accounts excluding the
traveling time.
23) Nonselling time is a factor to be considered in sales call allocation.
24) A salesperson has reached the most productive number of calls to make on an account when
further increases in calls increase sales expenses.
25) The term sales response function of a customer refers to the relationship between sales
volume and number of prospects in a territory.
26) Before making a sales call, the salesperson should first qualify an account, which means the
account should meet the firm’s credit standards.
27) Scheduling refers to the travel pattern the salesperson uses in working his or her territory.
28) Routing refers to the travel pattern the salesperson uses in working his territory.
29) Strict formal routing procedures are designed by firms that want to improve territory
coverage and minimize wasted time.
30) Salespeople usually file routing reports weekly.
31) Territorial evaluation is the comparison of performance standards for the individual territory
with the salesperson’s actual performance.
32) Sales managers monitor the frequency and time intervals between sales calls for each
salesperson.
33) Salespeople should not rely on technology for any of the sales activities.
34) Salespeople use Territory Analysis software application to upload customers’ list into the
system and analyze data based on purchase volume, purchase types and, purchase frequency.
35) Your ability to understand what’s causing your emotion is part of your emotional
intelligence.
36) Effective salespeople remember that building and maintaining relationships does not
necessarily require the mutual investment of resources.
37) Sales managers and executives hope that their emerging salespeople develop a certain aura
that the salesperson is perceived as possessing a quality of authority.
38) Many companies concentrate on improving the way their salespeople manage their time
because:
A) the cost of direct selling is rapidly decreasing.
B) the time available for face-to-face customer contact is increasing.
C) there is reduced emphasis on profitability.
D) time is always limited.
E) they want to increase the salesperson’s responsibilities.
39) ________ is a quantitative technique for determining the level of sales at which total
revenues equal total costs.
A) The sales response function
B) Equilibrium analysis
C) Profit allocation
D) Break-even analysis
E) The ELMS approach
40) The total fixed cost for Harold, a salesperson, is $20,000 per month. Harold generates 25%
gross profit on the products he sells. If Harold sells $200,000 worth of merchandise in six
months, which of the following statements is true?
A) By having Harold, the company incurred a direct loss of $70,000.
B) Harold generated $120,000 in gross profit for the company.
C) Harold sold $120,000 worth of goods, which equals the BEP.
D) By having Harold, the company incurred a direct loss of $280,000.
E) Harold generated $30,000 gross profit for the company.
41) Gross profit is the difference between:
A) sales revenue and costs of goods sold.
B) sales revenue and fixed costs of the salesperson.
C) sales revenue and costs of goods sold including taxes.
D) net profit and transportation cost.
E) total sales and manufacturing cost.
42) Based on the following data, calculate the breakeven point in dollars:
Sales = $400,000
Gross Profit = $100,000
Transportation = $8,000
Cost of Goods Sold = $280,000
Expenses = $10,000
Salary = $40,000
A) $96,667
B) $133,333
C) $166,000
D) $232,000
E) Cannot be calculated with the information provided
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43) Based on the following data, calculate the breakeven point.
Sales = $500,000
Transportation = $10,000
Gross Profit = $200,000
Lodging and Meals = $8,000
Salary = $37,000
Other expenses = $5,000
A) $150,000
B) $130,000
C) $100,0003
D) $86,667
E) Cannot be calculated with the information given
44) Mack Jacoby sells building supplies. His annual sales equal $450,000. His total fixed costs
annually equal $75,000. The cost of goods sold annually is $335,000. Calculate his gross profit
percentage.
A) 11.9%
B) 20.3%
C) 25.6%
D) 34.3%
E) Cannot be determined from information given
45) Mack Jacoby sells building supplies. His annual sales equal $450,000. His total fixed costs
annually equal $75,000. The cost of goods sold annually is $335,000. Mark’s break-even point in
terms of total sales is approximately:
A) $198,000
B) $218,600
C) $224,000
D) $293,000
E) $315,200
46) Mack Jacoby sells building supplies. His annual sales equal $450,000. His total fixed costs
annually equal $75,000. The cost of goods sold annually is $335,000. Mack works an average of
240 days a year and 8 hours each day. Mack makes an average of five sales calls per day. Mack’s
break-even volume per hour is approximately:
A) $119.00
B) $153.00
C) $171.00
D) $256.00
E) $392.00
47) Which of the following is used to calculate the costs and revenues of sales territories?
A) ELMS system
B) Break-even analysis
C) Multivariate territorial analysis
D) Key stoning
E) SWOT analysis
48) The annual break-even point of a salesperson is $2,000,000 and his per month salary is
$10,000. This means that:
A) the salesperson should generate $2,000,000 gross profit every year to cover the costs.
B) the salesperson should generate sales worth $2,000,000 every year to cover the costs.
C) the salesperson should generate $2,000,000 net profit every year to cover the costs.
D) the salesperson should generate gross profit worth $80,000 to cover the costs.
E) the salesperson is generating $80,000 profit compared to his fixed cost.
49) Which of the following activities is NOT an appropriate thing to do while you, the
salesperson, are waiting to see a buyer?
A) Asking the secretary how soon the buyer will be available.
B) Reading a magazine to clear your head and relax.
C) Organizing materials for the sales presentation.
D) Completing call reports that you will send to your boss.
E) Studying promotional material prepared by your marketing department.
50) Which of the following rules should a salesperson adopt in order to have more productive
lunch periods?
A) Monitor the time to avoid monopolizing too much of the buyer’s day.
B) Have an alcoholic drink only if the client makes the suggestion.
C) Conduct part of the sales presentation during lunch using a laptop.
D) When lunching alone, use the time to read something relaxing.
E) Offer to purchase the customer a lunchtime cocktail or dessert.
51) Which of the following would be a good rule for salespeople to follow in handling their
paperwork?
A) Avoid paperwork so that more time is available for sales presentations.
B) Politely interrupt a sales interview to get paperwork finished.
C) Finish paperwork during non-selling times and evenings.
D) Manage paperwork on a once-a-month basis.
E) Handle paperwork throughout the day.