Assignment #2: Calculating Employee Incentives

Quality Skis Produced Weekly Payout Amount

0 – 20 $0.00

21 – 30 $200.00

31 – 40 $350.00

41 – 50 $500.00

> 50 $800.00

 Data to determine the total incentive payouts for the five employees in the incentive plan.  

Total skis produced on a weekly basis = add the the number of skis produced weekly by every employee

Week 1

27+32+39+35+35=168

Week 2

15+25+31+34+38=143

Week 3

Week 3

30+42+17+24+37=150

Week 4

24+47+29+34+42=176

Week 5

42+51+32+48+48=221

In order for a weekly payout to occur, the group as a whole must achieve a minimum amount of 150 quality skis. If they do not produce at least 150 quality skis in a week, then no one receives an incentive payout that week.

From our calculation that means the employees met the 150 skis production target.

The payouts vary per person based on the amount of quality skis they produce each week.

Determining the total incentive payouts for the five employees in the incentive plan.  

Total amount of playout per employee

Dominick

27*200+ 15*0+ 30*200+24*200+42*500

5400+0+600+4800+21000=31800

Megan

32*350 +25*200 + 42*500 + 47*500 + 51*800

11200+5000+21000+23500+40800=101500

Patrick

39*350 + 31*350 + 17*0 + 29*200 + 32*350

13650+10850+0+5800+11200=41500

John

35*350+34*350+24*200+34*350+48*500

12250+11900+8400+6800+24000=63350

Vincent

35*350+38*350+37*350+42*500+48*500

12250+13300+12950+14700+24000=77200

Total payouts for all employees in the 5 weeks= 31800+101500+41500+63350+77200

=$315350