Your Selling Career at S-B&D Continues to progress. As a successful initial role as an Inside Sales representative and your more recent role as Territory manager where you acquitted yourself extremely well and delivered beyond expectation. This has led to your current promotion as Regional Sales manager - Power Tools and member of the compensation committee. In this new role beyond leading a team of Territory Managers [TM's] you have been assigned the task of studying and bringing forward and negotiating a recommendation to the SLT [Senior Leadership Team] on a new sales compensation structure. Nowadays, S-B&D is experiencing high levels of staff turnover (leaving the company or going to different departments) plus the lack of performance [over-achieving quota] by the best Sales Representatives. The SLT [Senior Leadership Team] has high hopes for this committee and your recommendations, this is high profile and can only help your career if done well. The Challenge from the SLT [Senior Leadership Team] @S-BD is: Study, bring Forward and Negotiate (as part of the Sales team) the following: Level 1: Inside Sales (IS)[4] Level 2: Territory Managers (TM's) [10] Level 3: Regional Sales Managers (RSM's) [3]; National Account Managers (NAM's) [4] NOTE 1: Numbers in brackets above [X] - are the number of salespeople in each role. For example, the company has 4 inside sales. NOTE 2: Total Compensation assumptions include: Level 1= $50,000 On Target Earnings (OTE) Level 2 $100,000 On Target Earnings (OTE) On Target Earnings (OTE) Level 3 $150,000 The OTE is the amount of money you can expect to earn if you hit 100% of your quota. NOTE 3: Directors/VP/ CRO's will be excluded for this phase of the project but could be part of a follow-up committee. Question 1 20 pts Create the required compensation plan recommendation When considering the compensation plan include in your thinking, please answer each question specifically and elaborate/give reasons: 1. How much the salary expense the company should pay if all achieved their OTE? Please type down your reasoning for the result. 2. If you can design the compensation plan for the Inside sales, what you will use? Consider both the Core Elements [base pay, commissions, bonuses] and the Non-Core Elements [Choice of plans; Incentive pay horizon] 3. If Using commissions in the sales compensation plan- Identify if [Absolute, relative, straight- line, gross margin] and why you select it or them (if you choose multiple)? 4. What would happen to the budget if the company exceed the plan by 20%, please explain the impact on the company and its employees. [Hint: think about the company's cash flow, financial stability, employee's income change, motivation, etc.] 5. What would happen to the budget if the company shortfall plan by 20%, please explain the impact on the company and its employees. NOTE: For Budget Calculations, assume that on-target sales plan is $100,000,000