Sales section. The section has 8 salespersons. Their base pays vary from $12,000 to $36,000 per annum, according to their seniority, and are given corresponding sales targets. In addition, they get 5% commission of all sales they bring in and an additional 1% point commission for every dollar they sell above their targets. Any salesperson who sells $1 million or more gets an additional bonus of $2,000. The salespersons are ranked according to the percentage they achieve above their targets. Only if the person exceeds target, the first and second top ranked each get an incentive trip to the annual sales convention and a five-day all expenses paid vacation there for four. This year, it is in Hawaii and the incentive package is worth $6,000.
a. Construct a spreadsheet model for this. Simulate 8 salesperson’s data and compute the individual salesperson’s commission, bonus, incentive, and total compensation.
b. For your data, what is the total compensation the company has to give out?
c. What percentage of the compensation is for base pay, commission, bonus, and incentive?
d. Would you recommend any changes in the pay structure? Why?
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.
This is only a preview of the solution. Please use the purchase button to see the entire solution