When a Salesperson Is Expected to Sell a Certain Number

question 182

Multiple Choice

When a salesperson is expected to sell a certain number of units of a product line each month, this represents what type of incentive to this salesperson?

• A) Straight commission
• B) Combination plan
• C) Straight salary
• D) Selling formula plan
• E) Sales quota

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Definitions:

Manufacturing Margin

The difference between the sales revenue of manufactured goods and the direct costs associated with producing those goods.

Total Variable Costs

All costs that vary with the level of production or sales, including materials, labor, and overhead expenses.

Market Segment

A subgroup of a larger market defined by its own unique preferences, characteristics, or needs.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which contributes to covering fixed costs and generating profit.