Compensation Plan Structures
Question # 00795320
Posted By:
Updated on: 02/23/2021 04:45 AM Due on: 02/23/2021
Compensation Plan Structures
Last year the owner of an auto dealership changed her sales manager's compensation plan. Previously, the manager received a fixed compensation. After the change, the manger's compensation was based on a percentage of sales. Compared to last year, sales have increased substantially but profits declined. Using economic analysis, explain the outcome and then recommend additional changes that would correct the situation.
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Rating:
/5
Solution: Compensation Plan Structures