Which of the Following Statements About the Economic Criteria Used

Multiple Choice

Which of the following statements about the economic criteria used to decide between using an independent agent or an internal sales force is true?

A) The fixed costs of using independent agents are lower than those of using a company sales force
B) The variable costs of using independent agents do not change over time
C) The variable costs of using independent agents are equal to the variable costs expended on an internal sales force
D) In terms of cost efficiency, an internal sales force is always more expensive than independent agents
E) The costs of using independent agents tend to level off as sales volumes increase