Management Is Considering Replacing an Existing Sales Commission Compensation Plan

question 72

Multiple Choice

Management is considering replacing an existing sales commission compensation plan with a fixed salary plan.If the change is adopted,the company's

• A)break-even point must increase.
• B)margin of safety must decrease.
• C)operating leverage must increase.
• D)profit must increase.

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Definitions:

Society

A group of individuals living together in a more or less ordered community, often sharing common cultural and social institutions.

Benefits

Advantages or profits gained from something, such as a job, policy, or activity.

Holistic Critical Thinking

An approach to critical thinking that considers the whole context, including varied perspectives and interrelated factors.

Scoring Rubric

A guide used for assessing the quality of tasks or performances, detailing the criteria and standards for different levels of achievement.