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EFI--a material handling company--pays each of its salespersons a base salary plus a percentage of revenues generated. To reduce overhead, EFI has switched from giving
EFI--a material handling company--pays each of its salespersons a base salary plus a percentage of revenues generated. To reduce overhead, EFI has switched from giving each salesperson a company car to reimbursing them $0.35 for each business related mile driven. Accounting records show that, on average, each salesperson drives 100 business related miles per day, 240 days per year.
Can you think of an alternative way to restructure the compensation of EFIs sales force that could potentially enhance profits? Explain.
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