Management is concerned about the lower level of profitability in the Mid-Central Region.Which of the following would be a reasonable possible explanation(s)of the lower profitability for the Mid-Central Region? I.The lower number of stores in the Mid-Central Region.
II)Sales employees are not as productive in generating sales as those in other regions.
III)The Mid-Central Region has a lower gross margin.
A)I only.
B)II only.
C)II and III only.
D)I,II and III.

Question

Quizplus · Accepted Answer

Both sales employee productivity and lower gross margin could contribute to the lower profitability, while the number of stores alone would not explain it. Therefore, options II and III are the best answer.

Management Is Concerned About the Lower Level of Profitability in the Mid-Central