You are the manager of Door-to-Door Vacuum Cleaners,Inc.Each salesperson is paid a base salary plus a percentage of the revenues she or he generates.In addition,each salesperson drives his or her car to and from each sales call and is reimbursed $0.40 per mile driven.On average,each salesperson drives about 150 miles per day and 240 days per year.As manager of Door-to-Door,how might you restructure the compensation of your sales force to enhance your profits?
Are there any potential disadvantages of your plan?

Question

You are the manager of Door-to-Door Vacuum Cleaners,Inc.Each salesperson is paid a base salary plus a percentage of the revenues she or he generates.In addition,each salesperson drives his or her car to and from each sales call and is reimbursed $0.40 per mile driven.On average,each salesperson drives about 150 miles per day and 240 days per year.As manager of Door-to-Door,how might you restructure the compensation of your sales force to enhance your profits?
 Are there any potential disadvantages of your plan?

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The Answer of You are the manager of Door-to-Door Vacuum Cleaners,Inc.Each salesperson is paid a base salary plus a percentage of the revenues she or he generates.In addition,each salesperson drives his or her car to and from each sales call and is reimbursed $0.40 per mile driven.On average,each salesperson drives about 150 miles per day and 240 days per year.As manager of Door-to-Door,how might you restructure the compensation of your sales force to enhance your profits?
 Are there any potential disadvantages of your plan?

You Are the Manager of Door-To-Door Vacuum Cleaners,Inc