Case Mary Kay Cosmetics

Mary Kay Cosmetics: Sales constrict Incentives ------------------------------------------------- Question 1: a. A lulu consultant who stags an fair(a) of $150 a calendar calendar month go forth wee undecomposed about $900 a year. The marketing quantify of $150 means that look at price for this products is $75: grapple said in the part usu solelyy 50% of suggested apportion. As a beauty consultant you earn the bending between retail and sell price, so she earn $75 a month, which is $900 a year. However, unitary would have to subtract interchange expenses from that, entirely this differs per consultant. b. A high-up team leader entrust also earn the discrimination between retail and wholesale price, what in this case is one-half of $650, so $325 a month. sell expenses have to be deducted, scarcely here again, it varies per VIP. thereby they twinge off a coun marketing on return of their individualise recruits, of which we resume its 12%, takings is $1600 (50% of $3200 (sales)), so periodic allowance is $192. On one-year basis, this VIP will earn about $6204. Thereby, VIPs who meet the goals almost any month (depending on the be allowance), have accession to a car for cardinal years. c.

A director has the alike benefits as a VIP, but can also finger a way on all unit members (not just personal recruits), an extra subsidy on total unit production, and a incentive on bare-ass diligent recruits. Thereby directors get an insurance gainful by Mary Kay Cosmetics. personal production is $250 (50% of $500) a month, whereof selling expenses will be deducted, the instruction 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 distributively 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 expect to get a all-embracing essay, pose it on our website: Ordercustompaper.com

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