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Evaluation of compensation plans

Sales Clerk's Compensation Plan

You are manager of a department store in Kyoto. Slaes are subject to month-to-month variations depending on the individual salesclerk's efforts. A new salary-plus-bonus plan has been in effect for four months, and you are reviewing a sales performance report. The plan provides for a base salary of $45,000 per month, a $58,000 bonous each month if the monthly sales quota is met, and an additional commisson of 5 percent of all sales over the monthly quota. The quota is set approximately 3 percent above the previous month's sales to motivate clerks toward increasing sales (in thousands):

SEE ATTACHED SPREADSHEET.

Compute the compensation for each sales clerk for each month.
Evaluate the compensation plan. Be specific. What changes would you recommend?

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Sales Clerk's Compensation Plan

You are manager of a department store in Kyoto. Slaes are subject to month-to-month variations depending on the individual salesclerk's efforts. A new salary-plus-bonus plan ...

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This explains the evaluation of compensation plans

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