Problem
As a salesman, you will earn commission based on the following rates:
a) 15% of gross margin per customer for year one starting on ship date of first load
b) 10% of gross margin per customer for year two
5% of gross margin per customer starting in year three and continuing through the duration of employment
Beyond year one separate calculation will be made at each gross margin level. Breakeven amount
Your commission will be calculated on a bi-weekly basis once you exceed your breakeven amount as outlined below:
The calculation is as follows:
Base Salary * 1.095 / 26 = Breakeven per pay period Example (for illustrative purposes only)
Commission example for a salary of $50,000/year:
Example: $50,000 * 1.095 / 26 = $2,105.77 / .15 = $14,038.46
What does "exceeding the Break-even amount" mean in this example?
In the *example, why is $2105.77 divided by .15?
If a customer's gross profit margin was $500 for the month, what would be the formula to find the commission?
What would the commission be on a customer's gross profit margin of $1500 a month?