Incentive Program
Sales Performance
A company tracks the sales performance of its salespersons based on several metrics:
- Initial Contacts (IC): The number of new potential clients contacted.
- Qualified Leads (QL): The number of initial contacts deemed likely to become customers.
- Sales Closed (SC): The number of qualified leads that resulted in actual sales.
- Revenue Generated (RG): The total revenue generated from closed sales (in dollars).
- Bonus Earned (BE): The bonus earned by the salesperson based on their performance (in dollars).
The company has two different incentive programs, Program A and Program B.
- Program A: Focuses primarily on revenue generation. Salespeople earn a bonus of 5% of their total revenue generated.
- Program B: Focuses on a combination of qualified leads and sales closed. Salespeople earn a bonus of $50 for each qualified lead and $500 for each sale closed.
A salesperson can choose any of the two incentive programs.
| Salesperson | IC | QL | SC | RG ($) | BE ($) |
|---|
| Hope | 172 | 94 | 5 | 143,000 | 7,200 |
| Jacqueline | 185 | 98 | 9 | 156,000 | 7,800 |
| Henry | 116 | 61 | 4 | 100,000 | 5,000 |
| Katheryn | 158 | 88 | 2 | 120,000 | 5,400 |
| Laura | 133 | 71 | 3 | 112,000 | 5,050 |
| Mark | 209 | 111 | 7 | 122,000 | 6,100 |
| Emma | 178 | 102 | 11 | 113,000 | 10,600 |
Each salesperson's Bonus Earned is the amount paid by the incentive program that the salesperson chose for the period shown. If each of the seven salespeople had instead been paid under whichever of the two programs pays that salesperson the larger bonus, by how much would the total of the seven bonuses have been greater?
