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Fundamentals of Selling 13th Edition by Charles Futrell
Edition 13ISBN: 978-0077861018Fundamentals of Selling 13th Edition by Charles Futrell
Edition 13ISBN: 978-0077861018 Exercise 18
A company is considering the following three compensation plans. Which of these will be the most expensive Which will be the least expensive Is the monetary cost the only consideration that a company should have
Plan A -Give each salesperson a commission of 10 percent on the first $250,000 worth of sales made each year and 12 percent on the next $250,000.
Plan B -Give each salesperson a salary of $10,000 a year and 5 percent commission on all sales made each year.
Plan C -Give each salesperson a salary of $25,000 a year and a bonus of 4 percent commission on all sales made over $250,000 in a year.
Plan A -Give each salesperson a commission of 10 percent on the first $250,000 worth of sales made each year and 12 percent on the next $250,000.
Plan B -Give each salesperson a salary of $10,000 a year and 5 percent commission on all sales made each year.
Plan C -Give each salesperson a salary of $25,000 a year and a bonus of 4 percent commission on all sales made over $250,000 in a year.
Explanation
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The salespersons aim to increase the sal...
Fundamentals of Selling 13th Edition by Charles Futrell
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