Scenario 18.1
Use the following to answer the questions.
Jafrum, Inc is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its merchandise through its website. Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he has been given the sales objective from Jafrum's management to increase sales dollars by 15 in the coming year by adding new customers. Sean's current compensation is based on a 1,000 per month draw, plus 5 of all sales over 100,000. His salary last year totaled 42,000. Management has given Sean the choice of going to a compensation plan where he will earn 15 of all sales, but no draw.
Refer to Scenario 18.1. Currently, Sean's compensation is based on the ____ plan; however, he is considering changing to the ____ plan.
A) straight salary; salary plus commission
B) straight commission; straight salary
C) salary plus commission; straight commission
D) salary plus bonus; straight bonus
E) straight bonus; straight commission
Question 2
The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ____ product.
A) convenience
B) shopping
C) specialty
D) unsought
E) durable
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