Capitol Enterprises Uses the Cost-Sales Ratio to Measure the Performance

question 2

Multiple Choice

Capitol Enterprises uses the cost-sales ratio to measure the performance of its salespeople. If, in the past year, a salesperson made $800,000 in sales, had travel expenses of $23,000, and received a base salary of $40,000 plus $6,000 in commissions, what was this sales rep's cost-sales ratio (to the nearest whole number percent) ?

• A) 3 percent
• B) 6 percent
• C) 9 percent
• D) 12 percent
• E) 15 percent

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Definitions:

Consultation

A process of seeking advice, information, or guidance from someone with expertise in a particular area.

Joint Decision Making

A collaborative process in which two or more parties make a decision together, combining their knowledge, expertise, and preferences to reach a consensus or agreement.

Decision Participation

The process in which individuals or groups contribute to making decisions that affect them.

Situational Aspects

Factors or conditions, present in a situation, that can influence outcomes or the behavior of individuals.