The formula to calculate the Sales Compensation Rate (SC) is:
\[ SC = \left( \frac{TC}{TS} \right) \times 100 \]
Where:
The Sales Compensation Rate (SC) is a measure of the percentage of total sales that is paid out as compensation to sales personnel. This rate helps in understanding the cost of sales efforts relative to the revenue generated, which can be useful for budgeting and performance evaluation.
Let's assume the following values:
Using the formula to calculate the Sales Compensation Rate (SC):
\[ SC = \left( \frac{5000}{100000} \right) \times 100 = 5\% \]
The Sales Compensation Rate (SC) is 5%.