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Quotas & compensation
Commission rate
The share of each booked dollar paid to the rep: target variable divided by quota gives the base rate.
Owned by: Sales analystTest band: Sales analyst
The formula
Base commission rate = Target variable ÷ Quota
In practice
A $60k variable on a $600k quota is a 10% rate. Every accelerator and SPIF changes the effective rate; model the whole plan at 80%, 100%, and 150% attainment.
The kind of thing the test asks
- Target variable $60k on a $600k quota. The base commission rate is…