Question
The Sturdy Bag Company operates a chain of handbag stores that sell 10 different styles of nayperisive vesse identical unit costs and selling prices. Each
The "Sturdy" Bag Company operates a chain of handbag stores that sell 10 different styles of nayperisive vesse identical unit costs and selling prices. Each store has a store manager who is paid a fixed salary Inashdue faesi receive a fixed salary and a sales commission. Sturdy is considering opening another store that is exported to have revenue and cost relationships shown here.
Selling price per bag. $65
Cost per bag: $35
Sales commission: 3
Rent costs: $30,000
Salaries: $100,000
Advertising: $30,000
Other fixed costs: $5.000
As the owner of the store, which sales compensation plan would you choose if forecasted annual sales of the new store were at least 10,000 units? What do you think of the motivational aspect of your chosen compensation plan?
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