Read the case on Jane’s Attic on pages 531-532 of the Retailing 8th edition text by Dunne. Lusch
Review the case and address each question while showing work for all mathematical problems.
Provide full analysis for all conclusions made. For any assumptions made, be sure to reference the case when providing justification for responses.
Which of Jane’s 10 salespeople are the top two performers and which are the bottom two performers?
Should Jane lower the base monthly compensation to $1,000 from $1,500? Are there any other changes she should make to the compensation plan?
What should be the minimal performance that Jane should expect from her salespeople in order for them to retain their jobs? How soon should Jane decide if a salesperson should be retained or terminated?