Question
Two months ago, the owner of a car dealership ( and a current football star), significantly changed his sales manager's compensation plan. Under the old
Two months ago, the owner of a car dealership ( and a current football star), significantly changed his sales manager's compensation plan. Under the old plan, the manager was paid a salary of $6000 per month; under the new plan, she receives 2 percent of the sales price of each car sold. During the past two months the number of cars sold increased by 40 percent, but the dealership's margins ( and profits) significantly declined. According to the sales manager, "Consumers are driving harder bargains and I have had to authorize significantly lower prices to remain competitive"What advice would you give the owner of the dealership?
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