New commission structure motive salespeople, Managerial Economics

Assignment Help:

A medical insurance company offers its salespeople the following compensation scheme: each worker takes a fixed salary  and, in addition to that, a commission depending on the volume of sales they generate. At the time, the salespeople are paid 10% of each sale they make that is above €3,500 per day. In order to motivate its salespeople to work harder, the company has decided to alter the commission structure and offer 25% for sales above €5,000. In all cases, the workers have to produce a minimum of €2,500 or else they are fired.

a) Demonstrate both compensation schemes in a graph. 

b) Will the new commission structure motive salespeople to work harder, and why?

 


Related Discussions:- New commission structure motive salespeople

Consumer welfare, '' monopoly is good for consumer welfare" is this crrect

'' monopoly is good for consumer welfare" is this crrect

Show the fixed proportion production function, Q. Show the Fixed Proportion...

Q. Show the Fixed Proportion Production Function? A fixed proportion production function is one in that technology needs a fixed combination of inputs, say labour and capital,

State the basis of business policies, State the Basis of business policies ...

State the Basis of business policies Managerial economics is the founding principle of business policies. Business policies are prepared based on studies and findings of manage

Mba programme, write a note on marris growth maximising model?

write a note on marris growth maximising model?

Theory of consumer behavior, • Budget constraint, budget line, budget set, ...

• Budget constraint, budget line, budget set, Budget constraint is a very important concept in economics and is utilized even in advanced economic theory. Let the competent tutors

Comprehesive Compectitive Impact Summary U.S. retail firm, U.S. retail indu...

U.S. retail industry, Arc Elasticity is correctly used to assess the dollar magnitude of net benefits of a decision to raise price/output combinations by 5% in the short and medium

Un''s integrated programme for commodities, The UN's Integrated Programme f...

The UN's Integrated Programme for Commodities Most of the political pressure for ICAs comes from spokesmen for the developing countries.  This is reflected in countless resolu

Agency problems, agency problems between shareholders and government

agency problems between shareholders and government

Functions or purposes of taxation, Functions or Purposes of Taxation T...

Functions or Purposes of Taxation The functions of taxation can be discussed from the activities of the government it is meant to achieve. These are: a.     Raise reven

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd