Two rules produce two results

In this simplified example, two percent of one hundred and twenty thousand is two thousand four hundred. Two percent of the twenty-thousand excess is four hundred. This illustrates only two possible rules, excluding other terms that might affect settlement.

Neither rule is automatically correct for every campaign. The agreement determines the calculation, not the label “threshold bonus”.

Multiple levels need a clear sequence

If rates change at successive thresholds, specify which parts of the base each rate applies to. One person might apply the highest rate to everything while another calculates separate bands.

Also test an outcome exactly at the threshold and an adjustment that changes the final level. These cases are easier to clarify before launch.

Consider the cost in the plan

Compare simulated results just below and just above the threshold. This shows how a change in sales affects the commercial cost under the selected rule.

For a CFO, that information supports assessment before a campaign begins. Trade Marketing organises thresholds and calculations, but should not fill an agreement gap with an assumed default. Everyone using the result needs to understand the rule.

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