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Q 3 , Imagine you manage a small division with 2 0 - 3 0 employees who make an average of $ 6 0 .

Q3, Imagine you manage a small division with 20-30 employees who make an average of $60.000 a year (or $5000 per month). The employees are paid monthly.You are thinking of ways to optimize the satisfaction they will get from a $600 bonus (per employee) that they will receive this year. Consider the following options for delivering the bonus. (For simplicity, ignore tax considerations: you mau treat all values as after-tax quantities.)Option A: Issue a separate $600 bonus check to each employee.Option B: Combine the $600 with a month's salary into 1 paycheck (i.e., issue a $5600 paycheck for a single month)|Option C: Distribute the $600 evenly across the 12 monthly paychecks (i.e., issue twelve paychecks of $5050 each).(a) Which option is likely to be most attractive to the employees? Which would be least attractive? Why? Discuss, and justify your answers. usine principles of mental accounting.(b) Can you think of any other ways of distributing the bonus that could be superior to the options above, in terms of how attractive they seem to the employees?

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