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.
-All of the following questions are relevant to developing an effective sales compensation plan EXCEPT ________.
A) What percentage of Wilson's sales force achieves its sales quota each month?
B) How much time does each Wilson salesperson spend with qualified prospects?
C) What are the motivation and skill levels of Wilson sales team members?
D) What is the average annual bonus received by Wilson's CEO?
E) What is Wilson's desired profit for each car sale?

Question

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. 
-All of the following questions are relevant to developing an effective sales compensation plan EXCEPT ________.
A) What percentage of Wilson's sales force achieves its sales quota each month?
B) How much time does each Wilson salesperson spend with qualified prospects?
C) What are the motivation and skill levels of Wilson sales team members?
D) What is the average annual bonus received by Wilson's CEO?
E) What is Wilson's desired profit for each car sale?

Quizplus · Accepted Answer

The average annual bonus received by Wilson's CEO is not relevant to developing an effective sales compensation plan. The other questions are relevant as they focus on the performance and abilities of the sales team, as well as the company's financial goals.

Edward Is the New Sales Manager at Wilson Auto Mart