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New compensation plan LL Linda Lopez Board Member, Marketing Fri, 6:14 pm Zoe, I was speaking with Rich earlier this week and he told me that we intend to continue our push for more stability in the way we compensate our salesforce. I firmly believe that this gives us a unique competitive edge in the industry. In line with this compensation strategy, we will retain the current commission rate structure to incentivize performance but also plan to increase the average base pay for all salespeople by 20%. Last year the average base pay was $49,000 across our 104 salespeople. Given that we plan to grow our salesforce by 12.08% next year, what is the estimated total cost associated with the 20% increase in average base pay? Sincerely, Linda Linda Lopez Board Member, Marketing | Andrews Corporation O $1,528,800 O $1,142,319 O $1,019,200 O $571,160 Respond

New compensation plan LL Linda Lopez Board Member, Marketing Fri, 6:14 pm Zoe, I was speaking with Rich earlier this week and he told me that we intend to continue our push for more stability in the way we compensate our salesforce. I firmly believe that this gives us a unique competitive edge in the industry. In line with this compensation strategy, we will retain the current commission rate structure to incentivize performance but also plan to increase the average base pay for all salespeople by 20%. Last year the average base pay was $49,000 across our 104 salespeople. Given that we plan to grow our salesforce by 12.08% next year, what is the estimated total cost associated with the 20% increase in average base pay? Sincerely, Linda Linda Lopez Board Member, Marketing | Andrews Corporation O $1,528,800 O $1,142,319 O $1,019,200 O $571,160 Respond

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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New compensation plan LL Linda Lopez Board Member, Marketing Fri, 6:14 pm Zoe, I was speaking with Rich earlier this week and he told me that we intend to continue our push for more stability in the way we compensate our salesforce. I firmly believe that this gives us a unique competitive edge in the industry. In line with this compensation strategy, we will retain the current commission rate structure to incentivize performance but also plan to increase the average base pay for all salespeople by 20%. Last year the average base pay was $49,000 across our 104 salespeople. Given that we plan to grow our salesforce by 12.08% next year, what is the estimated total cost associated with the 20% increase in average base pay? Sincerely, Linda Linda Lopez Board Member, Marketing | Andrews Corporation O $1,528,800 O $1,142,319 O $1,019,200 O $571,160 Respond
Transcribed Image Text:New compensation plan LL Linda Lopez Board Member, Marketing Fri, 6:14 pm Zoe, I was speaking with Rich earlier this week and he told me that we intend to continue our push for more stability in the way we compensate our salesforce. I firmly believe that this gives us a unique competitive edge in the industry. In line with this compensation strategy, we will retain the current commission rate structure to incentivize performance but also plan to increase the average base pay for all salespeople by 20%. Last year the average base pay was $49,000 across our 104 salespeople. Given that we plan to grow our salesforce by 12.08% next year, what is the estimated total cost associated with the 20% increase in average base pay? Sincerely, Linda Linda Lopez Board Member, Marketing | Andrews Corporation O $1,528,800 O $1,142,319 O $1,019,200 O $571,160 Respond
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