Industrial sales reps are often paid with a compensation plan that can be tailored to the incentive needs of a particular firm but also has a fixed salary component. This type of plan is called:

Question

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The given scenario describes a compensation plan that includes both a fixed salary component and a commission component. This type of plan is commonly known as a "salary plus commission" plan. Option A, a gross margin plan, would focus purely on the profitability of specific products or services sold, and would not necessarily include a fixed salary component. Option B, a straight salary plan, would not include any commission-based incentives, which are often used to motivate sales reps to exceed their sales targets. Option D, a fringe benefit design, is unrelated to the scenario described.

Industrial Sales Reps Are Often Paid with a Compensation Plan