Question

To hire 100 new salespersons you would multiply 100 by the annual pay of 75,000 which would result in 7.5M. The cost would be higher or lower depending on the average salary plus commission and amenities?

Answer 1

To calculate the cost of hiring 100 new salespersons, one must consider not only the average salary but also the commissions and amenities that increase the total compensation package. The base cost of $7.5M for 100 salespersons with a base annual pay of $75,000 will rise when these additional factors are included.

Step-by-step explanation:

When considering the cost of hiring 100 new salespersons with an annual pay of $75,000, the total cost of $7.5M can vary based on several factors. The average salary of the salespersons is just the base pay which amounts to $75,000 each. However, the cost to the company will be higher if one also considers commissions, which are often a part of salespersons' compensation. Moreover, amenities like health benefits, retirement plans, and other perks can significantly increase the overall cost to the company. For example, if you add a 25% commission to the base salary of $75,000, the cost for one salesperson would increase to $93,750, and for 100 salespersons, it would rise to $9.375M, without including the costs of amenities. Therefore, the final cost depends on the total compensation package, not just the base salary.