Question

Reisner, Inc., is a small company that manufactures egg cartons. It has a sales force of fifteen who sell all over the U.S. Last year the company exceeded its predicted sales by almost $25,000. Forty percent of these added sales were divided equally among Reisner’s salespeople.
Reisner used a(n) _____ to reward its salespeople.

A. augmented commission
B. bonus
C. profit-sharing plan
D. fringe benefit
E. salary enhancer

Answer 1

Answer:

The correct answer is letter "C": profit-sharing plan.

Explanation:

Profit-sharing plans are strategies companies use to boost employees' productivity since the years' income generated thanks to their effort is distributed among themselves. It could be detrimental in case the organization ends up with losses since the workers' efforts would be in vain.

Answer 2

Answer: c. Profit-sharing plan

Explanation: Dividing profits from sales for the year among salespeople represents a profit-sharing plan. The profit sharing plan is a way improving and keeping the morale, loyalty, etc. of workers. It is defined as an incentivized compensation plan that gives back to employees a certain percentage of the company's profits over a period of time, usually a year. It is only applicable when the company realizes a profit.