Hello friends, I have 1 question: 1/ I do not fully understand the influence of the formulas for calculating bonuses for sales on the formula for calculating BEP (Break-even point), specifically as follows: bonus formula for salesmen: 0.05 * revenue per order bonus formula for sales team lead: 0.01 * revenue per sales team bonus formula for sales area (ASM): 0.01 * revenue per sales Area bonus formula for sales director: 0.01 * revenue per country Could you help?. Thank you.
Late reply: When an organization offers bonuses for sales, it can increase the total amount of revenue generated. This additional revenue can help reduce the amount of money needed to break-even, as the costs of production are spread out over a larger number of sales. Bonuses can also incentivize sales employees to increase their sales performance, leading to increased sales and a reduction in the time necessary to reach the break-even point. In addition, bonuses can help attract and maintain a higher level of sales talent, creating a more efficient sales department and further reducing the costs of production. When calculating the BEP, it is crucial to take into account the effects of bonuses for sales, as they can have a major impact on the total revenue needed to break-even. Accurately forecasting the effect of bonuses on the BEP will help to ensure a successful and profitable business.
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Thanks Dagmara Sajdak, glad it helped!
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Hi Faisal S, thanks for the comment! Hope you both do well!
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Thanks MAJID SIDDIQUE!
Hello friends,
I have 1 question:
1/ I do not fully understand the influence of the formulas for calculating bonuses for sales on the formula for calculating BEP (Break-even point), specifically as follows:
bonus formula for salesmen: 0.05 * revenue per order
bonus formula for sales team lead: 0.01 * revenue per sales team
bonus formula for sales area (ASM): 0.01 * revenue per sales Area
bonus formula for sales director: 0.01 * revenue per country
Could you help?. Thank you.
Late reply:
When an organization offers bonuses for sales, it can increase the total amount of revenue generated. This additional revenue can help reduce the amount of money needed to break-even, as the costs of production are spread out over a larger number of sales.
Bonuses can also incentivize sales employees to increase their sales performance, leading to increased sales and a reduction in the time necessary to reach the break-even point. In addition, bonuses can help attract and maintain a higher level of sales talent, creating a more efficient sales department and further reducing the costs of production.
When calculating the BEP, it is crucial to take into account the effects of bonuses for sales, as they can have a major impact on the total revenue needed to break-even.
Accurately forecasting the effect of bonuses on the BEP will help to ensure a successful and profitable business.