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Refer to the Scenario Below to Answer the Following Question(s)

question 76

Multiple Choice

Refer to the scenario below to answer the following question(s) .
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy truck industry. Although Reliable Tools only has 15 customers, the company is the sole supplier of hub and axle components to those customers. Monthly sales at Reliable Tools are approximately $1 million. "You might say we have all our eggs in one basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but large accounts. Ninety-five percent of Reliable Tools' customers are located in Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given the nature of the industry, time spent with each customer is crucial.
-Several compensation plans are available to reward and motivate Reliable Tool's salespeople. Since generating new leads and new business can be a goal for the sales force, which compensation plan approach is MOST likely to motivate and direct the salespeople in that direction?

Definitions:

Cash Collected

The amount of money received by a company during a specific period from all sources, including sales, investments, financing, etc.

Net Sales

The total revenue from sales of products or services less returns, allowances, and discounts.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Depreciation

The reduction in value of tangible assets over time due to use and wear and tear.