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The base salary of all sales associates will start at $40,000, with a 0% commission on the first $800,000 in sales, noted as the Threshold Sales. The Target Sales will be set at $1,200,000 for each salesperson, with the commission rate of 2.5% for sales between the Threshold and Target levels. An Optimal Sales value of $1,600,000 will give a 5% commission rate for sales between the Threshold level and the Optimal level. The available sales compensation and base salary mix, if the Optimal Sales level is reached, will be a 50/50 ratio. Figure 1 below reflects the ideals of C. Fusco as stated in Salary...
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