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?

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. 
-Which of the following,if true,supports the argument that Edward should pay his sales team a combination of salary plus commission?

Quizplus · Accepted Answer

Implementing a "one price no hassle" pricing program means that the profit margin on each car is likely fixed, and therefore, paying excessive commissions could negatively impact the company's bottom line. A combination of salary plus commission would motivate the sales force while also controlling expenses. None of the other options address the issue of controlling expenses while motivating the sales force.

Edward Is the New Sales Manager at Wilson Auto Mart