Question

Alkara receives $200 per week plus 10 percent of the value of all the sales she makes. In a particular week, she makes a sale of $750. The 10 percent of the total revenue of $750best exemplifies

A)a benefit.
B)a wage.
C)an overtime pay.
D)an incentive pay.
E)a salary.

Answer 1

Alkara's earnings from 10 percent of her weekly sales is classified as incentive pay, as it is additional compensation on top of her salary that is tied to her sales performance.

Step-by-step explanation:

The additional money that Alkara receives based on the value of her sales is best categorized as incentive pay. This is because it is extra compensation given to her on top of her base pay that is directly tied to her performance, which in this case is the amount of sales she makes. Her base pay of $200 per week represents her salary, which is a fixed amount she earns regardless of sales. The 10 percent of the sales she makes, like the $75 she would earn from a $750 sale, exemplifies an incentive designed to motivate her to increase her sales.