Which of the following best suggests how to handle customer complaints?
a. Concentrate on the factual content of the complaint, rather than on the feelings of the complainer.
b. Operate on the assumption that the customer is never wrong.
c. Pass the customer from department to department until the customer gives up.
d. Offer explanations and alternatives when the complaint cannot be resolved as requested.
e. Let the customer see how angry you are, but finally give the customer what he or she wants.
d
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In dealing with customers, try to avoid subjective opinions or judgments.
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Indicate whether the statement is true or false.
Sanchez Semiconductors produces 200,000 high-tech computer chips per month. Each chip uses a component that Sanchez makes in-house. The variable costs to make the component are $1.20 per unit, and the fixed costs are $1,200,000 per month. The company has been approached by a foreign producer who can supply the component, within acceptable quality standards, for $1.00 each. If the company chooses to outsource, fixed costs can be reduced by 30%. There are no other uses for the facilities currently employed in making the component. What would be the effect on operating income, if the company decides to outsource?
A) There would be no effect on operating income. B) Operating income would increase by $400,000. C) Operating income would increase by $200,000. D) Operating income would decrease by $40,000.