Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Compensation
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2. Convergence selling Account management Leverage selling New business development New Current Customers Current New Products The Customer-Product Matrix
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6. Straight Salary 17 Straight Commission 19 Combination Plans (83%) Salary Plus Bonus 24 Salary Plus Commission 20 Salary Plus Bonus Plus Commission 18 Commission Plus bonus 1 Total 100% Percentage of Companies Using Use of Compensation Plans Source: Adapted from Sales Compensation Concepts and Trends (New York: Alexander Group, 2004).
7. Comparing Salary and Commission Plans for Field Sales Representatives 0 100 200 300 400 500 10,000 20,000 30,000 40,000 Straight Salary 10% Commission Total cost per person (thousands $) Sales Per Person in Thousands 50,000 Comparing Salary and Commission Plans
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10. Total Salary Incentive Compensation Position ($000) ($000) ($000) Top Sales Executive $91.0 $29.0 $120.0 National Account Manager 72.2 26.0 98.2 Regional Sales Manager 74.5 21.9 96.4 District Sales Manager 64.5 20.3 84.8 Key Account Rep 57.4 22.9 80.3 Senior Sales Rep 47.5 26.0 73.5 Intermediate Rep 36.1 15.3 51.4 Entry Level Rep 29.7 13.4 43.1 Compensation Levels for Firms using Salary Plus Incentives Sales & Marketing Management Compensation Survey, 2005
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20. Percentage Size Gross Percentage Commission Order Gross Margin of Margin to Commission on Paid to Number on Each Order Order Company Gross Margin Salesperson 1 10 $1,000,000 $100,000 15 $15,000 2 20 $500,000 $100,000 15 $15,000 Comparing Gross Margin Commissions on Two Orders