Wolverhampton Corporation has two lines of business: an established product and a new product.

Melindaisthebrandmanageroftheestablishedproductandisnot involved with the new product. Melinda has considerable experience at Wolverhampton Corporationworkingwithcustomersthatregularlybuythe established product.

Suzanna is the brand manager of the new product and is not involved with the established product. Suzanna was recently hired by Wolverhampton because of her experience working at a few industry firms that will sell the new product.

Wolverhampton's CEO has assigned different decision responsibilities to the two brand managers.

Melinda is the manager of the established product and has decision right over product pricing, but not over customer selection.

Suzanna is the manager of the new product and has decision rights over both product pricing and customer selection.

As Melinda doesn't have decision rights on customer selection, the CEO directs her as to which companies to call on. Melinda is allowed, within bounds, to set the price of the product. Suzanna has decision rights over both customer selection and product pricing.

Assigning a manager with a decision right means the CEO determinedthebenefitsofassigningthedecisionrightexceededthe cost.Not assigning a manager with a decision right means the CEO determined the costs of assigning the decision right exceeded the benefit.

Explain why the benefits of assigning Suzanna the decision rights over customer selection are likely to exceed the costs while the benefits of assigning Melinda decision rights over customer selection are not likely to be greater than the costs.

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