=+9. Elegant Electronics compensates its salesmen according to the following scheme. A salesman's remuneration comprises three components:

(a) a basic salary of f200 per month,

(b) a sales commission amounting to 1% of gross sales, and

(c) a bonus amounting to 5% of all gross sales made in excess of a budget target.

The budget target was initially set in July at f40000 for all salesmen, but is revised monthly on the basis of actual sales made in the previous month plus a 10% increase.

On reviewing the scheme after 6 months' operation it is noticed that two salesmen selling the same products in different areas have the following sales records:

July August September October November December Simon Smooth (f)

20000 50000 30000 60000 20000 60000 Percival Plodder (f)

40000 46000 36000 42000 38000 48000