For the initial values shown in the spreadsheet, which plan$$commission or combination$$would give the rep the highest compensation?

multiple choice $1$

commission

combination

compensation is equal with both plans

Which plan would give the greatest profit contribution to Nanek, Inc.?

multiple choice $2$

commission

combination

profit contribution is equal with both plans

Welles thinks a sales rep might be motivated to work harder and sell $1,100$ units of Product B if the commission rate $($under the commission plan$)$ were increased to $10$ percent. If Welles is right $($and everything else stays the same$),$ would the higher commission rate be a good deal for Nanek?

multiple choice $3$

Yes, it will result in a higher profit contribution.

No$,$ it will result in a lower profit contribution.

It makes no difference, profit contribution doesn$$t change.

Instead of changing the commission rate for Product B$,$ Welles wonders if a temporary price discount might be more effective. If he discounts the price by $10\%$ he believes he can boost sales by $25\%$ using the commission plan. What effect would that have on profit?

multiple choice $4$

Profit contribution would decrease by $$9,000\mathrm{.}00$

Profit contribution would decrease by $$3,250\mathrm{.}00.$

Profit contribution would be unchanged.

Profit would increase by $$3,300\mathrm{.}00.$

Profit would increase by $$10,546\mathrm{.}88.$

A sales rep interested in the job is worried about making payments on her new car. She asks if Welles would consider paying her with a combination plan but with more guaranteed income $($an $$18,000$ base salary$)$ in return for taking a $3$ percent commission on Products B and A$.$ If this arrangement results in the same unit sales as Welles originally estimated for the combination plan, would Nanek, Inc. and the sales rep, be better off or worse off under this arrangement?

muliple choice $5$

This would be better for both Nanek and the sales rep

This would be worse for Nanek but better for the sales rep.

This would be better for Nanek but worse for the sales rep.

This would be worse for both Nanek and the sales rep.

This would make no difference for either Nanek or the sales rep.