Structuring Sales Commissions Questar Electronics, a producer of a wide range of consumer products, is facing increasing competitive pressures from foreign producers. In response, Questar is reexamining its overall management control system, including the way the company compensates members of its sales force. Below are highly condensed data for two representative products that Questar sells: 11eb7c27_d416_e17d_9ab5_37f32c082566_SM1604_00 Required 1. Under the assumption that salespeople are paid commissions equal to 10% of sales, which of the company's products will likely be more aggressively promoted Why 2. Can you suggest an alternative incentive plan, one that would better align employee and corporate interests (i.e., one that would motivate more goal-congruent behavior)

Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

النسخة 6الرقم المعياري الدولي: 978-0078025532

Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

النسخة 6الرقم المعياري الدولي: 978-0078025532

تمرين 2

Structuring Sales Commissions Questar Electronics, a producer of a wide range of consumer products, is facing increasing competitive pressures from foreign producers. In response, Questar is reexamining its overall management control system, including the way the company compensates members of its sales force. Below are highly condensed data for two representative products that Questar sells:

Required
1. Under the assumption that salespeople are paid commissions equal to 10% of sales, which of the company's products will likely be more aggressively promoted Why
2. Can you suggest an alternative incentive plan, one that would better align employee and corporate interests (i.e., one that would motivate more goal-congruent behavior)

التوضيح

موثّق

1.
If sales commission is paid variable ...