Alkara receives $200 per week plus 10 percent of the value of all sales she makes over $750 per week. The 10 percent of sales over $750 Alkara receives is an example of:
A)a gratuity.
B)a stipend.
C)a contribution.
D)incentive pay.
E)a salary.

Question

Quizplus · Accepted Answer

The 10 percent of sales over $750 is an incentive pay, as it is a variable component of Alkara's pay that is tied to her performance and serves to motivate her to increase her sales. The other options are not applicable, as a gratuity is a tip or gift given voluntarily, a stipend is a fixed sum of money paid as an allowance or scholarship, and a contribution is a donation or participation in a cause. A salary is a fixed, regular payment for work performed, which does not apply in this case as Alkara's pay is partly based on her sales.

Alkara Receives $200 Per Week Plus 10 Percent of the Value