Solved

Scenario 18

question 197

Multiple Choice

Scenario 18.1 Use the following to answer the questions.
Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its merchandise through its website. Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he has been given the sales objective from Jafrum's management to increase sales dollars by 15% in the coming year by adding new customers. Sean's current compensation is based on a $1,000 per month draw, plus 5% of all sales over $100,000. His salary last year totaled $42,000. Management has given Sean the choice of going to a compensation plan where he will earn 15% of all sales, but no draw.
Refer to Scenario 18.1. Currently, Sean's compensation is based on the ____ plan; however, he is considering changing to the ____ plan.

Definitions:

Cranial Bones

The bones that form the skull, protecting the brain and supporting structures of the face.

Flat Bones

Bones with a thin, roughly parallel surface that provide protection for body organs and a base for muscular attachment. Examples include the skull, ribs, and scapulae.

Osteoclasts

Cells that break down bone tissue, playing an essential role in bone remodeling and calcium homeostasis.

Calcium Salts

Inorganic compounds found in bones and teeth, critical for maintaining their hardness and strength.