You have gathered data on 15 of your retail stores. You are considering a new compensation structure
Question:
You have gathered data on 15 of your retail stores. You are considering a new compensation structure of 15% commission on sales or paying $25 per hour. Based on the data, compare and contrast the two compensation structures and select the compensation structure that you believe is appropriate. Support your decision.
1. Develop a graph to display sales and hours.
2. table to compare and contrast the two compensation structures being evaluated.
a. Add a column in the data table (15% commission) and compute 15% commission on sales for each store.
b. Sum the total commission for each store.
c. Sum the total commission for all 15 stores.
d. Add a column to the data table ($25/hour wage) and compute the $25/hour wage for each store.
e. Compute the hourly rate based on the 15% commission and compare with the $25 per hour wage.
f. Determine the compensation that you believe is most appropriate. Justify your recommendation
Store | Hours | Sales | |
1 | 120 | $23,300 | |
2 | 135 | $25,600 | |
3 | 96 | $19,200 | |
4 | 102 | $10,211 | |
5 | 240 | $19,330 | |
6 | 190 | $35,789 | |
7 | 108 | $12,540 | |
8 | 234 | $43,150 | |
9 | 140 | $27,886 | |
10 | 300 | $54,156 | |
11 | 254 | $34,080 | |
12 | 180 | $25,900 | |
13 | 270 | $36,400 | |
14 | 175 | $25,760 | |
15 | 256 | $31,500 |
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott