Compensating salespeople with a straight commission on net sales is consistent with which of the following specific goals?
A)Developing a new territory.
B)Increasing sales volume.
C)Reducing fluctuations in salespeople's income.
D)Increasing gross margin.
E)Discouraging small orders.

Question

Quizplus · Accepted Answer

Compensating salespeople with straight commission on net sales incentivizes them to increase sales volume since their income is directly tied to the amount of sales they make. This method of compensation does not address developing a new territory, reducing fluctuations in income, increasing gross margin, or discouraging small orders.

Compensating Salespeople with a Straight Commission on Net Sales Is