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Math Help - Formulating Incremental Commission

  1. #1
    Newbie
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    Oct 2009
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    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
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  2. #2
    MHF Contributor
    Joined
    Dec 2007
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    Ottawa, Canada
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    66
    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.
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