Case Mary Kay Cosmetics

Mary Kay Cosmetics: Sales Force Incentives ------------------------------------------------- Question 1: a. A peach tree consultant who shell outs an average of $150 a calendar calendar month go forth earn slightly $900 a year. The marketing value of $150 means that sell price for this products is $75: manage said in the slickness usually 50% of suggested sell. As a beauty consultant you earn the deflection between retail and sell price, so she earn $75 a month, which is $900 a year. However, maven would have to subtract marketing expenses from that, plainly this differs per consultant. b. A high-up team leader will also earn the discrepancy between retail and wholesale price, what in this case is one-half of $650, so $325 a month. sell expenses have to be deducted, besides here again, it varies per VIP. Thereby they jerk off a relegation on return of their individualised recruits, of which we resume its 12%, end product is $1600 (50% of $3200 (sales)), so monthly allowance is $192. On yearbook basis, this VIP will earn about $6204. Thereby, VIPs who meet the goals almost every month (depending on the stay allowance), have access to a car for deuce years. c.

A director has the same benefits as a VIP, but can also hitch a commission on all unit members (not just personal recruits), an extra subvention on total unit production, and a indemnity on new diligent recruits. Thereby directors get an insurance salaried by Mary Kay Cosmetics. Personal production is $250 (50% of $500) a month, whereof selling expenses will be deducted, the commission from personal recruits is 12% of $2500 (50% ! of $5000), so $300 a month. The commission on unit production is 11% of $4750 (50% of $9500): $522.50 on a monthly basis. The production bonus is already given and is $700 each month. The recruiting bonus is awarded when your unit recruits at least three new active consultants in a month, we can assume that all recruited consultants argon active in this case. The bonus varies from $100 to $400, because this unit has the last number of...If you need to get a full essay, pose it on our website: OrderCustomPaper.com

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