Percent of the profit on the eyeglasses

Reference no: EM131006206

A relatively small company that sells eyeglasses to the public wants to incentivize its sales staff to sell customers higher-quality frames, lenses, and options. To do this, the company has decided to pay the sales representatives based on a percentage of the profit earned on the glasses. All sales representatives will earn 15 percent of the profit on the eyeglasses. However, the own- ers are concerned that the sales staff will fear earning less than they do now. Therefore, those who were already working at the company are grandfathered into an arrange- ment where the workers are guaranteed to earn at least their base salary. Newly hired employees, however, are guaranteed only minimum wage based on the hours worked. To ensure only productive employees are retained, employees who are underperform- ing for three months in a row are automatically terminated. For those employees who are grandfathered in, any month where the representative earns only the salary is considered underperforming. For newer employees, the bottom quarter of the employees based on profit earned per hour worked are considered underperforming. Use a decision table to represent the logic in this process. Write down any assumptions you have to make.

Reference no: EM131006206

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