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Straight Salary vs Straight Commission or Combination Plans

In what respects would a compensation plan differ among salespeople for the following firms? a) the manufacturer of small airplanes used by executives; b) a wholesaler of office equipment and supplies; c) an automobile dealer.

Solution Preview

When looking at which ways the salary plan should be, one must consider the following ideas

1) does this salary plan encourage sellers to sell more?
2) does this salary plan provide at least minimum income at all times?

with this in mind, ...

Solution Summary

This solution discusses the three different compensation planse for salespeople in 166 words.

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