Herb and Les sell radio ads at WKRP in Cincinnati. The new general manager has implemented a compensation plan such that this year, sales reps will receive 2% of every advertising dollar they have sold (in addition to a $31,600 base salary), plus a growth bonus of 2% of sales growth if sales are up, and a retention bonus of (retention - 50%) * 5% of this year's sales. Last year, Herb and Les each sold $1,200,000. This year, Herb sold $1,400,000 and had a retention rate of 80%. Les sold $1,000,000 this year and had a retention rate of 70%. What is Herb's growth bonus this year?

Answer rating: 100% (QA)

Calculating Herbs Growth Bonus 1 Calculate Sales Growth Last years s... View the full answer