Question
Management Control and Budgeting Question 1 Simon Smooth and Percival Plodder sell double glazing (window improvements). Their monthly pay is made up as follows: 200
Management Control and Budgeting Question 1 Simon Smooth and Percival Plodder sell double glazing (window improvements). Their monthly pay is made up as follows: 200 basic wage Commission: 1% of actual sales Bonus: 5% of sales achieved above target Target: For first month (July), this is 40,000 for each salesman. After this, it is set at actual previous month's sales plus 10% increase Question: Fill in the tables below to calculate each person's pay. The actual sales that each person achieves are shown below in the workings section Comment on what impact you think the motivational system is having on the behaviour. Is it fair and is it good for the company? Commission Bonus Total Percival Plodder Basic Commission Bonus Total July August September October November Simon Smooth Basic December Workings Sales Target Difference Sales Target Difference July 20000 40000 40000 40000 August 50000 46000 September 30000 36000 October 60000 November 20000 42000 38000 December 60000 48000
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