Last year the owner of an auto dealership changed her sales manager's
Question # 00795282
Posted By:
Updated on: 02/22/2021 01:17 PM Due on: 02/22/2021

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: Last year the owner of an auto dealership changed her sales manager's