Commission formula

[Guest]

I have a bit of a quandry with this one. I have a spreadsheet I need to
calculate commissions with. First the salespeople enter in how many sales
they get each day which then totals at the bottom. The way it works for most
of these sales is if they get between 1-4 sales, they will get $2 for each
sale. Above and beyond 4, they get $5 for each sale. I have the forumla
setup like this:

=IF(B28<4,B28*2,6+(B28-3)*5) where B28 is the total number of units sold.

The problem is I have one product where the commissions are on three tiers:

1-5 units= $7
6-10 units= $10
11+ units= $13

How would I calculate this?

 

[Niek Otten]

http://www.mcgimpsey.com/excel/variablerate.html

 

[Guest]

I like to restructure the calculation as $7 per unit, PLUS $3 per unit ($10 -
$7) above 5, PLUS $3 per unit ($13 - $10) above 10.
Then the formula is =7*b28 + max(0,3*(b28-5)) + max(0,3*(b28-10)).
Each MAX ensures that there's no penalty for not reaching that threshold.
--Bruce

 

[Roger Govier]

Hi

One way
=A1*7+(MAX(0,A1-5)*3+(MAX(0,(A1-10)*3

Your first formula expressed in the same way would be
=A1*2+MAX(0,A1-4)*3

The formula pays the base amount on all sales, then the incremental
value on the sales above each incremental step.

 

[Dana DeLouis]

Another option:
=MAX(7*A1,10*A1-15,13*A1-45)

HTH :>)

 

[Guest]

So many answers so far. You are all great.

I used the answer that Roger Govier gave since it worked the best for me.
Thanks all!!!

 

[Roger Govier]

Hi

Thanks for the feedback.
My solution had some extraneous brackets included, and would have
resulted in an error if used as posted. It should have read
either =A1*7+(MAX(0,A1-5)*3)+(MAX(0,A1-10)*3)
or more simply =A1*7+MAX(0,A1-5)*3+MAX(0,A1-10)*3
Bruce's solution was identical to mine, but with the correct number of
brackets.
Dana also gave the correct result, and requires the fewest typing of
brackets, which as you can see, I sometimes get wrong<bg>