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MECC JUNE 2023 COMMISSION CHALLENGE

Here is a comprehensive walkthrough guide for the MECC June 2023 Commission Challenge provided by two of our faculty fellows, David Brown and Diarmuid Early. The case is available in your ExPrep account. Try it yourself, and if you get stuck, look for the solution in the videos.

TASK

MECC challenge will give you hands-on experience with calculating and understanding commissions from a manager perspective, and will help further develop your analytical and modeling skills.

Combining commission with base pay is a very common compensation plan for most sales departments and understanding commission is extremely beneficial for anyone involved with a company’s finances or seeking a career in or related to sales.

You are a manager at a software company that has 8 sales reps. Your company offers a base software package with the option for add-ons.

Sales rep’s individual goals are based on:
– Dollar amount of base packages sold
– Dollar amount of add-ons sold as a percentage of dollar amount of base packages (sometimes referred as an attachment rate)

WALKTHROUGH VIDEO PROVIDED BY DAVID BROWN

WALKTHROUGH VIDEO PROVIDED BY DIARMUID EARLY This video walks through some basic functions (especially range lookups) that you would need to calculate a fairly complex sales commission. This is recorded his first attempt at this, which includes a bit of getting lost and confused on the last section – nobody’s perfect! Sections

00:00 Introduction
03:18 Initial calculations
11:59 Adding a time filter
13:18 Calculating for the whole team
17:14 I get lost…

MECC JUNE 2023 COMMISSION CHALLENGE

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