This form of commission rate may actually result in overselling and higher selling costs to the company:
A) regressive.
B) incremental.
C) a combination of constant and regressive rates.
D) constant.
E) progressive.

Question

Quizplus · Accepted Answer

A progressive commission rate incentivizes salespeople to sell more, as they will earn a higher percentage of commission for selling higher amounts. However, this may result in overselling and higher selling costs to the company in the long run, as salespeople may prioritize quantity over quality in order to earn a higher commission.

This Form of Commission Rate May Actually Result in Overselling