A Producer of Industrial Valves and Gauges Has a Sales

Multiple Choice

A producer of industrial valves and gauges has a sales force of 40 people who use their own cars to cover territories of various sizes in the western half of the United States.To reimburse these people for the use of their cars,the plan most equitable to both management and the sales force is:

A) Fixed allowance per month.
B) A graduated mileage allowance: for example,30 cents a mile for the first 12,000 miles,and 24 cents a mile for all mileage above 12,000.
C) Payment of actual expenses as reported by the sales reps.
D) Flat rate per mile.
E) Flexible allowance such as the Runzheimer Plan.