QUESTION NO 3 Carib Argo Distributors, a local agricultural input supply company has not made a profit for the last two years The company has excellent products, employs six Sales Representatives, and distribute its products island wide You have been appointed Sales Manager for the company and after a periodof review you conclude the following The sales representatives who were paid a flat salary were unhappy with the company's current compensation plan Four of thesales representatives were recently hired and didn't fully understand how to properly manage their assigned sale territories A main factor contributing to the low sales and profits was due to the fact that sales team members lacked some basic skills in selling Explain to the sales team the difference between a salary only compensation, commission only compensation and a base salary plus commission compensation Recommend a most appropriate compensation plan for the sales team Based on a salary plus commission package, calculate the total take home pay for a sales representative whose actual sale for the month is $6,500,000 00 Use the information provided below on the sales representative's basic salary and sales target for the month, the company's commission structure in your calculation Show all workings Basicsalary $ 160 000 00 per month (net pay) Sales target for month $ 3,000, 000 00 Commission structure For achieving the sales target the representative gets $60,000 00 Sales representative gets an additional 0 5 of any increase in sales between $3,000,000 $5,500,000 00 Reps also receive 1 on any sales above $5,500 000 Illustrate to the team how effective routing and scheduling helps in territorymanagement You have decided to change the traditional markup pricing (cost plus) strategy to a more flexible fonn because while markup pricing the most commonly used it is not very effective in maximizing profit for the finn Explain why this is so and recommend another approach to pricing that is better at increasing profits

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QUESTION NO 3 Carib Argo Distributors, a local agricultural input supply company has not made a profit for the last two years. The company has

QUESTION NO 3

Carib Argo Distributors, a local agricultural input supply company has not made a profit for the last two years. The company has excellent products, employs six Sales Representatives, and distribute its products island wide. You have been appointed Sales Manager for the company and after a periodof review you conclude the following:

The sales representatives who were paid a flat salary were unhappy with the company's current compensation plan
Four of thesales representatives were recently hired and didn't fully understand how to properly manage their assigned sale territories
A main factor contributing to the low sales and profits was due to the fact that sales team members lacked some basic skills in selling

Explain to the sales team the difference between a salary-only compensation, commission- only compensation and a base salary plus commission compensation.

Recommend a most appropriate compensation plan for the sales team

Based on a salary- plus commission package, calculate the total take home pay for a sales representative whose actual sale for the month is $6,500,000.00

Use the information provided below on the sales representative's basic salary and sales target for the month, the company's commission structure in your calculation. Show all workings

Basicsalary=$ 160. 000.00 per month (net pay) Sales target for month: $ 3,000, 000.00

Commission structure:

For achieving the sales target.the representative gets $60,000.00
Sales representative gets an additional 0.5% of any increase in sales between

$3,000,000 -$5,500,000.00

Reps also receive 1% on any sales above $5,500.000.

Illustrate to the team how effective routing and scheduling helps in territorymanagement

You have decided to change the traditional markup pricing (cost plus) strategy to a more flexible fonn because while markup pricing the most commonly used it is not very effective in maximizing profit for the finn. Explain why this is so and recommend another approach to pricing that is better at increasing profits.