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Suppose the incentive plan is configured such that an employee performing between 100% and 110% receives an additional 5% of the base pay, while an employee performing between 110% and 125% receives 10%. If the employee performed at 115%, he'd receive 10% of the base pay, resulting in:
10% of $500 = $50 regular incentive pay
10% of $50 = $5 overtime incentive pay
Total incentive pay: $55
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