# Formulating Incremental Commission

• Oct 12th 2009, 01:39 AM
Raedmund
Formulating Incremental Commission
Hi,

I'm trying to formulate the following multiplier sales commission structure:

Base Annual Salary - b
Charge Out - c
Individual's commission - i
Where c is < 1b then individual's commission is equivalent to 9% of c
where b < c < 2b then i is equivalent of 12.5% of c
where 2b < c < 3b then i is equivalent of 20% of c
where 3b < c < 4b then i is equivalent of 25% of c
where 4b < c then i is equivalent of 30% of c

As an extension to this, how would one figure out the optimum salary for any given target total annual income?

Since I'm not sure what area of maths this is (although I have a feeling it's something to do with sets) I also don't know whether I am repeating another thread.

Many thanks to anyone can help me out with this one.
R
• Oct 12th 2009, 07:21 AM
Wilmer
Whoa!
Salary = \$1, sales = \$20,000,000
So b = 1 and c = 20000000
i = 20000000 * .30 = 6000000
Total income: \$6,000,001

As you can see, you need some restrictions in there.