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Assume you are the manager of a large distribution company and have free reign to change the sales force compensation plan. You have decided that
Assume you are the manager of a large distribution company and have free reign to change the sales force compensation plan. You have decided that you need to change the compensation plan to maximize salesperson gross margins. In doing so, you've decided to alter sales force authority in pricing the product for customers. Based on the research discussed in class, which of the following would provide the greatest gross margins for the company?
A. High salesperson authority over price (base commissions on gross margins to control discounting )
B. Low salesperson authority over price (management approval for all price discounts)
C. Medium salesperson authority over price (a specific limit on price discounting, e.g- 10%)
D. Very high salesperson price authority leave the decision up to the salesperson)
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