Ralph, a Regional Sales Manager, Was Asked to Analyze Whether

Multiple Choice

Ralph, a regional sales manager, was asked to analyze whether his company should launch a marketing effort to become RightFoods' produce supplier this year. He found that Fresh Green Veggies currently has a supply contract with RightFoods that has three more years in its term; RightFoods would have to pay Fresh Green $0.5 million to break the contract. Also, Fresh Green has installed automated ordering/billing software in RightFoods' home office; RightFoods would have to spend $100,000 to replace it and retrain its staff. He concluded that RightFoods' ________ costs would be too high to seriously consider a change in supplier, thereby recommending that a marketing effort not be launched this year.

A) capital
B) operating
C) switching
D) labor
E) cooptation