Last year the owner of an auto dealership changed her sales


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.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Last year the owner of an auto dealership changed her sales
Reference No:- TGS01083567

Expected delivery within 24 Hours