Previous | Next | Contents | Index | Navigation | Library |
For example, made-to-stock models of Global Computers' Sentinel and Envoy PCs cost less to manufacture, and thus bring the company higher profit margins (Figure 7 - 6). To promote sales in revenue classes associated with higher profit margins, Global pays both the Sentinel and the Envoy made-to-stock (MTS) revenue classes at higher compensation rates than their assemble-to-order (ATO) counterparts.
In this scenario, Global defines two plan elements: one for the MTS revenue classes, and another for the ATO revenue classes. Global associates a different compensation rate table with each plan element.
Previous | Next | Contents | Index | Navigation | Library |