Last year the owner of an auto dealership changed her sales, Ask an Expert

Economics

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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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91373297

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