Jackie Company's CFO provided the following information on last year's sales for two customers that purchased a variety of products from the company.

a. Which customer is more profitable for the company?
b. Compare a sales incentive scheme that pays 3% of sales revenue to an incentive scheme that pays 5% of customer profit.How will each scheme affect salespersons' desire to increase sales to each customer?

Question

Jackie Company's CFO provided the following information on last year's sales for two customers that purchased a variety of products from the company.
  
a. Which customer is more profitable for the company?
b. Compare a sales incentive scheme that pays 3% of sales revenue to an incentive scheme that pays 5% of customer profit.How will each scheme affect salespersons' desire to increase sales to each customer?

Quizplus · Accepted Answer

The Answer of Jackie Company's CFO provided the following information on last year's sales for two customers that purchased a variety of products from the company.
  
a. Which customer is more profitable for the company?
b. Compare a sales incentive scheme that pays 3% of sales revenue to an incentive scheme that pays 5% of customer profit.How will each scheme affect salespersons' desire to increase sales to each customer?

Jackie Company's CFO Provided the Following Information on Last Year's