Question

Water World sells wake boards and water skis and pays sales commissions based on product sales price. The wake boards sell for a higher price than the skis and the skis have a higher contribution margin per unit than the wake boards. Which of the following are true? Sales commissions based on sales price would be ideal to use under these circumstances. The company should not pay sales commissions on these products. Salespersons will be motivated to sell more wake boards as they will create a higher commission per unit for them. The company would rather see more skis sold as it creates the higher profit per unit for the company.

Answer 1

- Salespersons will be motivated to sell more wake boards as they will create a higher commission per unit for them.

-The company would rather see more skis sold as it creates the higher profit per unit for the company.

Step-by-step explanation:

- Salespersons will be motivated to sell more wake boards as they will create a higher commission per unit for them.

-The company would rather see more skis sold as it creates the higher profit per unit for the company.