Simple Company compensates its salespeople based on a percentage of sales volume (items sold). Some of the
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Simple Company compensates its salespeople based on a percentage of sales volume (items sold). Some of the salespeople have sold to customers with bad credit. The new chief operating officer has suggested that the commission be based on net contribution margin (deducting uncollected amounts), so that salespeople are rewarded for the sale of higher margin items. Do you agree with the proposal? Explain.
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Related Book For
Managerial Accounting
ISBN: 9780137689453
1st Edition
Authors: Jennifer Cainas, Celina J. Jozsi, Kelly Richmond Pope
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