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This exercise is available to Assessor subscribers only.
Now it's your turn to solve a real-life problem!
If you have a subscription to ERI's Salary Assessor (SA), analyze the following problem:
Problem Statement
Your company, ABC Oil & Gas, Inc. (eSIC 1300) is located in Albany, New York. The company has revenues of $100 million. You have established an incentive plan in which the employee receives an incentive based upon sales volume.
Sales representatives who sell $250,000 in a quarter receive an incentive at median competitive rates. Those who sell less receive no incentive (only base salary), and those who sell more receive a graded incentive based upon how far they exceed quota.
Example: If an employee sells 25% above quota, they will receive an incentive at the 75th percentile.
Memory Jogger
Herman Rodriguez sold $300,000 in his first quarter with the company. He has 5 years experience in the position of Call Center Sales Representative. Based on data for today's date, what incentive should he receive? (Remember to divide the annual incentive by 4 to find out the quarterly amount.) Please select the closest answer.