CAS3701 Assignment
6 (COMPLETE
ANSWERS) 2025 - DUE
19 September 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
, Exam (elaborations)
CAS3701 Assignment 6 (COMPLETE
ANSWERS) 2025 - DUE 19 September 2025
Course
Capstone in Accounting Sciences (CAS3701)
Institution
University Of South Africa (Unisa)
Book
Accounting
CAS3701 Assignment 6 (COMPLETE ANSWERS) 2025 - DUE 19 September
2025; 100% TRUSTED Complete, trusted solutions and explanations Ensure
your success with us.
Here are the possible reasons for the outcomes observed after ElectroMart's new compensation
structure was introduced:
1. Increase of 10% in Sales to New Customers
The most likely reason for this increase is the new commission structure itself. By offering a
higher commission rate (4%) on sales to new customers compared to the reduced rate for
existing customers (2%), the plan created a strong financial incentive for sales representatives to
focus on acquiring new business. The new sales quotas and performance ranking also likely
played a role, as they tied a representative's bonus and overall standing directly to their ability to
bring in new clients. This shift in focus, driven by the financial reward, successfully met one of
the key objectives of the new plan: to boost new sales.
2. Decline of 20% in Sales to Existing Customers
This decline is a direct and negative consequence of the incentive structure described above.
Because the commission for existing customers was reduced from 2.5% to 2%, sales
representatives had a lower financial motivation to focus on maintaining and growing
relationships with their current client base. They were incentivized to chase higher-paying new
customer sales, likely neglecting their existing clients. The decline also suggests that the sales
quotas for existing customers were not strong enough to counteract the pull of the higher new-
customer commission.
3. Significant Drop in Customer Satisfaction Scores
6 (COMPLETE
ANSWERS) 2025 - DUE
19 September 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
, Exam (elaborations)
CAS3701 Assignment 6 (COMPLETE
ANSWERS) 2025 - DUE 19 September 2025
Course
Capstone in Accounting Sciences (CAS3701)
Institution
University Of South Africa (Unisa)
Book
Accounting
CAS3701 Assignment 6 (COMPLETE ANSWERS) 2025 - DUE 19 September
2025; 100% TRUSTED Complete, trusted solutions and explanations Ensure
your success with us.
Here are the possible reasons for the outcomes observed after ElectroMart's new compensation
structure was introduced:
1. Increase of 10% in Sales to New Customers
The most likely reason for this increase is the new commission structure itself. By offering a
higher commission rate (4%) on sales to new customers compared to the reduced rate for
existing customers (2%), the plan created a strong financial incentive for sales representatives to
focus on acquiring new business. The new sales quotas and performance ranking also likely
played a role, as they tied a representative's bonus and overall standing directly to their ability to
bring in new clients. This shift in focus, driven by the financial reward, successfully met one of
the key objectives of the new plan: to boost new sales.
2. Decline of 20% in Sales to Existing Customers
This decline is a direct and negative consequence of the incentive structure described above.
Because the commission for existing customers was reduced from 2.5% to 2%, sales
representatives had a lower financial motivation to focus on maintaining and growing
relationships with their current client base. They were incentivized to chase higher-paying new
customer sales, likely neglecting their existing clients. The decline also suggests that the sales
quotas for existing customers were not strong enough to counteract the pull of the higher new-
customer commission.
3. Significant Drop in Customer Satisfaction Scores
