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Which is preferred for the store owner The figure compares the compensation that a shoe salesperson receives if she is on a straight salary of

Which is preferred for the store owner

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The figure compares the compensation that a shoe salesperson receives if she is on a straight salary of $50 per day or if she receives 100 a commission of $5 for each pair of shoes sold. Commission 90 Which compensation structure is preferred by the salesperson? Suppose the salesperson sells less than 10 pairs of shoes per day and only cares about compensation. For the salesperson, the salary is preferred. Salary Compensation received per day Suppose the shoe store owner's goal is to sell as many pairs of shoes as possible. For the store owner, the is the preferred form of compensation. 6 8 10 12 14 16 18 20 commission Pairs of shoes per day salary

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