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Marketing Analytics: Sales Compensation Questions: a. For the initial values shown in the spreadsheet, which plan-commission or combination-would give the rep the highest compensation? Commission

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Marketing Analytics: Sales Compensation Questions: a. For the initial values shown in the spreadsheet, which plan-commission or combination-would give the rep the highest compensation? Commission Combination Compensation is equal with both plans c. Welles thinks a sales rep might be motivated to work harder and sell 1,100 units of Product B if the commission rate (under the commission plan) were increased to 10 percent. If Welles is right (and everything else stays the same), would the higher commission rate be a good deal for Nanek? Yes, it will result in a higher profit contribution x No, it will result in a lower profit contribution It makes no difference, profit contribution doesn't change d. Instead of changing the commission rate for Product B, Welles wonders if a temporary price discount might be more effective. If he Profit contribution would decrease by $9,000.00 Profit contribution would decrease by $3,250.00 Profit contribution would be unchanged Profit would increase by $3,300.00 Profit would increase by $10,546.88 with a combination plan but with more guaranteed income (an $18,000 base salary) in return for taking a 3 percent commission on Products B and A. If this arrangement results in the same unit sales as welles originally estimated for the combination plan, would Nanek, Inc. and the sales rep, be better off or worse off under this arrangement? This would be better for both Nanek and the sales rep x This would be worse for Nanek but better for the sales rep This would be better for Nanek but worse for the sales rep This would be worse for both Nanek and the sales rep This would make no difference for either Nanek or the sales rep Marketing Analytics: Sales Compensation Questions: a. For the initial values shown in the spreadsheet, which plan-commission or combination-would give the rep the highest compensation? Commission Combination Compensation is equal with both plans c. Welles thinks a sales rep might be motivated to work harder and sell 1,100 units of Product B if the commission rate (under the commission plan) were increased to 10 percent. If Welles is right (and everything else stays the same), would the higher commission rate be a good deal for Nanek? Yes, it will result in a higher profit contribution x No, it will result in a lower profit contribution It makes no difference, profit contribution doesn't change d. Instead of changing the commission rate for Product B, Welles wonders if a temporary price discount might be more effective. If he Profit contribution would decrease by $9,000.00 Profit contribution would decrease by $3,250.00 Profit contribution would be unchanged Profit would increase by $3,300.00 Profit would increase by $10,546.88 with a combination plan but with more guaranteed income (an $18,000 base salary) in return for taking a 3 percent commission on Products B and A. If this arrangement results in the same unit sales as welles originally estimated for the combination plan, would Nanek, Inc. and the sales rep, be better off or worse off under this arrangement? This would be better for both Nanek and the sales rep x This would be worse for Nanek but better for the sales rep This would be better for Nanek but worse for the sales rep This would be worse for both Nanek and the sales rep This would make no difference for either Nanek or the sales rep

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