Edward is the new sales manager at Wilson Auto Mart. The previous sales manager set commission rates informally without considering how much each sale covered expenses. As a result, Wilson Auto Mart barely breaks even on each car sale once commissions are paid. Edward wants to motivate his sales force but avoid having excessive commissions. Which of the following, if true, supports the argument that Edward should pay his sales team a combination of salary plus commission?
A)Wilson Auto Mart's sales team consists of high-performing, experienced salespeople.
B)Wilson Auto Mart has a sales force that has a significant desire for a floor to their earnings.
C)Each Wilson Auto Mart salesperson is encouraged to sell at least ten vehicles each month.
D)Wilson Auto Mart salespeople are primarily asked to find new clients and service current accounts.

Question

Quizplus · Accepted Answer

B)A major advantage of combination plans is they give salespeople a floor to their earnings.

Edward Is the New Sales Manager at Wilson Auto Mart