Scale-based rate or sometimes flat rate based on volume % change from prior year.
Scale can be based on:
•Percentage
•Dollar Amount
Volume can be based on:
•Cases
•Lbs/Kgs
•Purchases Amount
•FOB Amount (Contract Pricing)
The Overbase is not applicable for this type of calculation.
The Rate can be calculated against one of the following:
•Number of Cases
•Lbs/Kgs (weight)
•Purchases Amount
•FOB Amount (Contract Pricing)
•Fixed Amount: The Rate is the amount of the year-end bonus for the bonus rule.
Example:
