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Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532 Exercise 2
Structuring Sales Commissions Questar Electronics, a producer of a wide range of consumer products, is facing increasing competitive pressures from foreign producers. In response, Questar is reexamining its overall management control system, including the way the company compensates members of its sales force. Below are highly condensed data for two representative products that Questar sells:
Required
1. Under the assumption that salespeople are paid commissions equal to 10% of sales, which of the company's products will likely be more aggressively promoted Why
2. Can you suggest an alternative incentive plan, one that would better align employee and corporate interests (i.e., one that would motivate more goal-congruent behavior)
Required
1. Under the assumption that salespeople are paid commissions equal to 10% of sales, which of the company's products will likely be more aggressively promoted Why
2. Can you suggest an alternative incentive plan, one that would better align employee and corporate interests (i.e., one that would motivate more goal-congruent behavior)
Explanation
Verified
Verified
1.
If sales commission is paid variable ...
Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
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