Question

Omar and Vincenzo sell magazine subscriptions by telephone. Omar is paid $1.00 for every 5 calls he makes, while Vincenzo is paid $1.00 for every subscription he sells. Omar is paid on a ________ schedule whereas Vincenzo is paid on a ____________ schedule.

Answer 1

Answer:

Omar is paid on a FIXED RATIO schedule whereas Vincenzo is paid on a VARIABLE RATIO schedule.

Explanation:

When someone gets paid on a fixed ratio schedule, they are getting paid for every determined amount of time worked or tasks performed, e.g. you get paid $23 per hour, regardless of how much work you do.

Generally salespeople are paid using a variable ratio schedule because most (or all) of their salary is based on sales commissions. That means that the more they sell, the more money they earn, e.g. a salesperson is paid 3% of total sales.