critically evaluate PBs sales budgeting system and sales force compensation. Describe any potential dysfunctional behaviors that PBs systems are likely to generate
make a recommendation as to whether a three-year budget (Assume that the advertising campaign is expected to bea Critically evaluate Jensen's request and shoulkd he approvwed per her proposal e meters throughout the world. Postage meters and sells postage nufactures inating the need to affix stamps. The meter keeps track envelopes.teto a post office and pays money, and the post office postageos the meter e that amount. The firm offers about 30 different postage meter's the user takes of the postage, the postage, tto print postage totaling that anmount. The firm offers y and the pmai manal systems (costing a from small manual systems (costing a few hundred dollars dollars) systenis, roo $75.000) ne un Euro ios sting up ized into Research and Development, Manufacturi further subdivided into four sectors: North A American marketing sector has a sales force c salespeople per region. South America, Europe, and Asia. The North into 32 and ihe Niomh regions with approxi mately 75 to 200 begins with the chief financial officer (CFO) and the vice president of he total sales for the next year. Their staffs look at trends of th marketing PB models and project total unit sales by model forecast and dollar sales per calculated nroiect total unit sales by model within each marketin sector. Price increases are model are calculated. The North American sector is then given a tareet revenue by model for the year. The manager of the North American nann, and her staff then allocate the division's target units and target revenue for each model per region are derived by taking the region's historical hine times North America's target for that model. For example, model next year. The Utah region last year s by region. The target unit sales percentage sales for that mac 6103 has North American target unit sales of 18,500 for tof all model 6103s sold in North America. Therefore. Utah's t of all 4.I percent is758 units (4.1% 18,500). The average sales price of the 6103 is set at S 11.00. Thus, revenue budget for 6103s is $8,338,000. Given the total forecasted unit sales, average sell ing prices and historical sales of each model in al regions, each region is assigned a unit target and revenue budget by model. The region's total revenue budget is the sum of the individual models" revenue targets. Each salesperson in the region is given a unit and revenue target by model using a similar procedure. If Gary Lindenmeyer (a salesperson in Utah) sold 6 percent of Utah's 6103s last year, his unit sales target of 6103s next year is 45 units (6#x 758). His total revenue target for 6103s is $495,000 (or 45 x $11,000). Totaling all the models gives each salesperson's total revenue budget. Salespeople are paid a fixed salary plus a bonus. The bonus is calculated based on the following table: Bonus % of Total Revenue Target Achieved No bonus 5% of salary 10% of salary 20% of salary 30% of salary 40% of salary 50% of salary 60% of salary I 50% make a recommendation as to whether a three-year budget (Assume that the advertising campaign is expected to bea Critically evaluate Jensen's request and shoulkd he approvwed per her proposal e meters throughout the world. Postage meters and sells postage nufactures inating the need to affix stamps. The meter keeps track envelopes.teto a post office and pays money, and the post office postageos the meter e that amount. The firm offers about 30 different postage meter's the user takes of the postage, the postage, tto print postage totaling that anmount. The firm offers y and the pmai manal systems (costing a from small manual systems (costing a few hundred dollars dollars) systenis, roo $75.000) ne un Euro ios sting up ized into Research and Development, Manufacturi further subdivided into four sectors: North A American marketing sector has a sales force c salespeople per region. South America, Europe, and Asia. The North into 32 and ihe Niomh regions with approxi mately 75 to 200 begins with the chief financial officer (CFO) and the vice president of he total sales for the next year. Their staffs look at trends of th marketing PB models and project total unit sales by model forecast and dollar sales per calculated nroiect total unit sales by model within each marketin sector. Price increases are model are calculated. The North American sector is then given a tareet revenue by model for the year. The manager of the North American nann, and her staff then allocate the division's target units and target revenue for each model per region are derived by taking the region's historical hine times North America's target for that model. For example, model next year. The Utah region last year s by region. The target unit sales percentage sales for that mac 6103 has North American target unit sales of 18,500 for tof all model 6103s sold in North America. Therefore. Utah's t of all 4.I percent is758 units (4.1% 18,500). The average sales price of the 6103 is set at S 11.00. Thus, revenue budget for 6103s is $8,338,000. Given the total forecasted unit sales, average sell ing prices and historical sales of each model in al regions, each region is assigned a unit target and revenue budget by model. The region's total revenue budget is the sum of the individual models" revenue targets. Each salesperson in the region is given a unit and revenue target by model using a similar procedure. If Gary Lindenmeyer (a salesperson in Utah) sold 6 percent of Utah's 6103s last year, his unit sales target of 6103s next year is 45 units (6#x 758). His total revenue target for 6103s is $495,000 (or 45 x $11,000). Totaling all the models gives each salesperson's total revenue budget. Salespeople are paid a fixed salary plus a bonus. The bonus is calculated based on the following table: Bonus % of Total Revenue Target Achieved No bonus 5% of salary 10% of salary 20% of salary 30% of salary 40% of salary 50% of salary 60% of salary I 50%
