Question

Which of the following is likely to have the lowest total personal seling expenses?

a. a company with saelspeople on a omcbination paln an d lwo sales volume
b. a company with sales people on straight salary and low sales volume
c. a company with straight ocmmision salespeople and high sales volume
d. a company with salespeople on straight salary and high sales volume
a company with straight commsion salespeople and low sales volume

Answer 1

A company with salespeople on straight salary and low sales volume is likely to have the lowest total personal selling expenses.

Step-by-step explanation:

Based on the information provided, a company with salespeople on straight salary and low sales volume is likely to have the lowest total personal selling expenses.

Straight salary means that the salespeople receive a fixed amount of money regardless of their sales performance. In this case, with low sales volume, the company would have minimal expenses related to sales commissions or variable compensation.

This would result in lower total personal selling expenses compared to the other options.

On the other hand, companies with high sales volume or those utilizing combination plans or straight commission salespeople would likely incur higher total personal selling expenses due to the increased sales activity or commission-based compensation structure.