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grigory [225]
3 years ago
12

Two successful firms are observed with quite different compensation plans for their salespeople. One firm pays its salespeople o

n a commission basis, whereas the other firm pays its salespeople fixed salaries. Do you think that one of the two companies is making a mistake? Explain.
Business
2 answers:
cricket20 [7]3 years ago
5 0

Answer:

Salary and Commission compensation benefit has its pros and cons. However, The Company that adopts Salary Compensation benefit might be making a mistake.

Explanation:

If you pay salesmen a straight salary, some may have limited motivation to exceed basic expectations. However, commission based remuneration is pro performance in that drive salesmen to set more aggressive goals, work through obstacles and rejection to meet their target for a particular period.

Businesses that pay fixed salaries incur higher overhead costs because you have to pay whether you are making profits or not. But the case is different in Commission based compensation benefit where the risk is shared and commission is only paid when money is made.

jasenka [17]3 years ago
5 0

Answer:The firm who pays on fixed salary is making a mistake.

Explanation: A compensation plan this is the total package which shows details of an employee's salary, wage, terms of payment, and benefits. They also includes comission and bonuses to be paid to employees.

Both firms have different compensation plans, for their ‘salesperson’. firm A would benefit more from paying a commission to their employees because this means they would only have to pay the employee if there is a sale ( or for job done.). This cancels the need to pay employee's for work which does not result in sales. Unlike Firm B who operates on a fixed salaries which translates to having to pay employee's salary even when they are not productive.

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When comparing different forms of advertising, the property manager should realize that A) trade journals are ineffective for re
Papessa [141]

Answer: C) direct mail is favored by industrial and commercial property owners.

Explanation:

Direct mail advertising is the method still preferred by most industrial and commercial property owners. This is simply down to the fact that it enables them to build a prospective list of clients that they can always target. They then mail these clients professional ads when there is an opening. The benefit of this is that they are mailing to who they would consider to be an audience more likely to act on the information that way their efforts are not wasted.

6 0
3 years ago
Fox Corp. failed to accrue warranty costs of $150,000 in its December 31, 20x2, financial statements. In addition, a $130,000 ch
faust18 [17]

Answer:

$150,000

Explanation:

$150,000

The failure to accrue warranty expense is an accounting error. It gives rise to a Prior period adjustment in the year of discovery (20x3).

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8 0
2 years ago
Which factor will not cause an increase in demand for good X? a decrease in the price of good X a decrease in income if good X i
Roman55 [17]

Answer:

I believe it's "a decrease in income if good X is an inferior good"

Explanation:

If the price is decreased people are more likely to buy it. If people have more money they are more likely to buy more thinks including good X. An increase in popularity with good X is sure to make more people want to buy it, so the second option is the only one that really makes sense.

8 0
2 years ago
Which of these is a renewable resource? A. Coal B. Trees C. Iron D. Oil<br><br> 2b2t
harkovskaia [24]
Trees are a renewable resource
4 0
3 years ago
Read 2 more answers
The following financial information is presented for three different companies. Determine the missing amounts.
Leto [7]

Answer:

Note: <em>The organized question is attached</em>

<em />

d. Net income = Income from operating - Other expenses and losses

Net income = $15,000 - $4,000

Net income = $11.000

f. Gross profit - Sales - Cost of goods sold

$38,000 = $95,000 - Cost of goods sold

Cost of goods sold = $95,000 - $38,000

Cost of goods sold = $57,000

h. Income from operations = Net income - Other expenses and losses

Income from operations = $11,000 + $7,000

Income from operations = $18,000

g. Income from operations = Gross profit - Operating expenses

$18,000 = $38,000 - Operating expenses

Operating expenses = $38,000 - $18,000

Operating expenses = $20,000

7 0
2 years ago
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