18 Nov 2020
System Avengers Inc. (SAI) manufactures and sells products to business and industrial customers for $7,500 each. Sales person Robin is one of 50 company salespeople who are compensated by commission earnings only. All earn commissions of 20% on all sales revenues generated and additional 5% commission on all unit sales above 30 per year (on number 31 and on). The variable expense per sale is $2,000 excluding sales commissions. Salespeople are provided lead (potential customer) by the firm’s marketing department. Robin’s historical “close rate” on leads has be 16% or one out of every 6.25 leads provided.
What dollar amount of commission earnings are expected for Robin?