As a result it limits ambition as the brilliant minds

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sale of more than $ 500, 000 in a month. As a result, it limits ambition as the brilliant minds such as Nicole are limited psychologically to $500,000 as nothing is highlighted in regards to above that. Question 3 Arguments can be put forward for both paying more commission for products with a higher profit margin and a smaller commission for small profit margins. As per the current structure, profit is calculated based on sales returns and which item is sold. This means that in essence products that have a higher profit margin does not get one a higher commission. In Pacific Medical Supply it is the disposable plastic instruments and syringes that are imported from China which generate a margin of 80% as compared to the others which fall between 40%
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PACIFIC SUPPLY 1 and 50%. The effect of the profit margin model is that specific product will be pushed more by sales personnel so that they can earn more commission. The advantage of this is that it will generate better incomes for the business as it will bring better incomes. In my own opinion giving commissions based on the margin is dangerous for the business. This is because the sales personnel will push that product more at the expense of the others. This will in turn even make the others a waste of space or even become obsolete. For example, the company depends on the best sellers by more than 20%. With the changing
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  • Fall '19
  • Sales, The Commission, The Profit

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