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Economics

EFI, a materials handling company, pays each of its salespersons a base salary plus a percentage of revenues generated. To reduce overhead, EFI has switched from giving each salesperson a company car to reimbursing them $0.35 for each business-related mile driven. Accounting records show that, on average, each salesperson drives 100 business-related miles per day, 240 days per year. Can you think of an alternative way to restructure the compensation of EFT's sales force that could potentially enhance profits? Explain

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9275729

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