The management of Floral Treats Cosmetics wants its sales people to sell aggressively and engage in virtually no missionary activities. The cosmetics firm is not financially strong, and so its management wants to relate the compensation plan directly to gross margins. Floral Treats should use a _____ plan for paying its sales force.

Question

Quizplus · Accepted Answer

A straight-commission plan directly ties a salesperson's earnings to sales performance, which encourages aggressive selling and is suitable for a company like Floral Treats Cosmetics that wants to closely link compensation to gross margins without incurring fixed salary costs.

The Management of Floral Treats Cosmetics Wants Its Sales People