AutoSave OF A AP2... Sheets Problems_2-24.xls - Compatibility Mode View Tell me Home Insert Draw Page Layout Formulas Data Review Share Comments Arial v 10 v Alu General X X G & Wrap Text 2 Insert Y O V Delete Paste B 1 U UV Y Av = = = Merge & Center Conditional Format Cell Formatting as Table Styles Sort & Fiter # Format Find & Select Analyze Data Sensitivity K34 A B B D E F G H I. 1 Commission Plans 2 3 You just got a job as a salesman. You have a choice of different salary plans. 4 8 5 Plan A Earnings: $2040 per month plus 10% of sales 6 Plan B Earnings: $1785 per month plus 12% of sales 7 Plan C Earnings: $1530 per month plus 15% of sales 8 9 Your total compensation will increase for larger sales volume and decrease when sales go down. 10 There is a trade off in the three plans. If you want a higher salary, you need to accept a lower commission. 11 To figure out which plan is best for you, you need to estimate the amount of sales you expect to make during the year. 12 13 Estimate (Case 1) 14 Sales are about the same every month. Use $4000 as the average per month. You need to find the total for the entire year. 15 16 Estimate (Case #2) 17 Sales are about the same for the first ten months of the year: $4,000 per month. For November and December they double the previous month's total. 18 You need to find the sales total, in dollars, for the entire year, using different assumptions for revenue. 19 20 Calculate your total yearly sales revenue. 21 22 Case 1 Case 2 23 Month Sales in $ Case 1 Sales in $ Case 2 24 Jan Grass Seed TicketSales Dieselor Gasoline Sales Commission Compound interest Ready + + 166% Share Comments Arial v 10 2 Insert , 0 V Delete Paste Y Sort & Fiter # Format Find & Select Analyze Data Sensitivity F G I. AutoSave OF A AP2... Sheets Problems_2-24.xls - Compatibility Mode Home Insert Draw Page Layout Formulas Data Review View Tell me X X v Alu 2 Wrap Text General G B 1 U UV Av = = = Merge & Center $ % 4 Conditional Format Cell Formatting as Table Styles K34 X f fix A B D E Ty 20 Calculate your total yearly sales revenue. 21 22 Case 1 Case 2 23 Month Sales in $ Case 1 Sales in $ Case 2 24 Jan 25 Feb 26 Mar 27 Apr 28 May 29 Jun 30 Jul 31 Aug 32 Sep 33 Oct 34 Nov 35 Dec 36 Total 37 38 Calculate how much commission (bonus) you would earn yearly for each case. 39 Calculate the annual salary for each salary plan. 40 41 Combine the two payments to find which salary plan pays the most in Case 1. 42 Grass Seed TicketSales Dieselor Gasoline Sales Commission Compound interest + Ready + 166% AutoSave a OF AA 2... Sheets Problems_2-24.xls - Compatibility Mode View Tell me Home Insert Draw Page Layout Formulas Data Review Share Comments X X Arial v AA v 10 General 2 Wrap Text 2 Insert v Delete Format v Y O V Paste B 1 I U U Y Av = = = Merge & Center v Y | Conditional Format Cell Formatting as Table Styles Sort & Fiter Find & Select Analyze Data Sensitivity K34 X A B C D E F F G H Annual Salary Total Compensation Annual Salary Total Compensation 40 41 Combine the two payments to find which salary plan pays the most in Case 1. 42 43 Commission Rate Case 1 Annual Commission Monthly Salary 44 Plan A 10% $2,040 45 Plan B 12% $1,785 46 Plan C 15% $1,530 47 48 Combine the two payments to find which salary plan pays the most in Case 2 49 50 Commission Rate Case 2 Annual Commission Monthly Salary 51 Plan A 10% $2,040 52 Plan B 12% $1,785 53 Plan C 15% $1,530 54 55 If Total Sales equaled $100,000, which plan pays the most? $100,000 56 57 Commission Rate Commissions Paid on $100K Monthly Salary 58 Plan A 10% $2,040 59 Plan B 12% $1,785 60 Plan C 15% $1,530 61 62 63 Annual Salary Total Compensation 64 Grass Seed TicketSales DieselorGasoline Sales Commission Compound interest + Ready , 166%