A Producer Wants to Increase the Amount of Time Its

question 222

Multiple Choice

A producer wants to increase the amount of time its sales reps spend on supporting activities. It also wishes to keep its sales reps motivated and aggressive, and also provide some security. Which payment plan should the firm use?

• A) Straight salary
• B) Combination plan
• C) Straight commission

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Definitions:

Outside Customers

Individuals or entities that purchase a company's products or services but are not part of the company itself.

Maintenance Department

A segment within a company responsible for the upkeep and repair of equipment, ensuring that operations run smoothly and efficiently.

Variable Costs

Costs that vary directly with the level of production or sales, such as materials and labor.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.