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\nVisit Below Link, To Download This Course:\n\nhttps://www.tutorialsservice.net/product/mba-540-assignment-latest-saint-leo/\n\nOr \nEmail us on\nSUPPORT@TUTORIALSSERVICE.NET\n\nMBA 540 Assignment Latest-Saint Leo\nMBA540\nMBA 540 Assignment Latest-Saint Leo\nMBA540 Managerial Economics\nRead the scenario provided in the text and then answer the questions provided.\nBook: Textbook: Loose leaf edition: Brickley, J., Smith, C., & Zimmerman, J. (2016). Managerial economics and organizational architecture (6th ed.). New York: McGraw Hill/Irwin. Special softcover version for Saint Leo: ISBN: 978-1-308-59318-0.\n

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mba 540 assignment latest saint leo

MBA 540 ASSIGNMENT LATEST-SAINT LEO

Visit Below Link, To Download This Course:

https://www.tutorialsservice.net/product/mba-540-assignment-latest-saint-leo/

Or

Email us on

SUPPORT@TUTORIALSSERVICE.NET

MBA 540 Assignment Latest-Saint Leo

MBA540

MBA 540 Assignment Latest-Saint Leo

MBA540 Managerial Economics

Read the scenario provided in the text and then answer the questions provided.

Book: Textbook: Loose leaf edition: Brickley, J., Smith, C., & Zimmerman, J. (2016). Managerial

economics and organizational architecture (6th ed.). New York: McGraw Hill/Irwin. Special softcover

version for Saint Leo: ISBN: 978-1-308-59318-0.

Chapter 14 –“Analyzing Managerial Decisions: Structuring Compensation Plans”

ANALYZING MANAGERIAL DECISIONS: Structuring Compensation Plans

Parkleigh Pharmacy is a small department store in Rochester, NY, specializing in upscale, expensive

personal accessories (e.g., sunglasses, beauty aids, leather goods) and home decorations (e.g., crystal,

china, table lamps). Kaufmann’s is a large department store chain, based in Pennsylvania, with several

stores in the Rochester area. Kaufmann’s carries a broader range of products and caters more to middle-

income consumers. Salespeople at Parkleigh are paid a straight hourly wage (i.e., no sales

commissions). In addition, they are entitled to a 30 percent discount on anything they buy at the store. By

contrast, salespeople at Kaufmann’s are paid an hourly wage (lower than the hourly wage paid at

Parkleigh) plus a commission of 5 percent on sales they make.

they receive no discount on products they

They receive no discount on products they buy at Kaufmann’s.

1. Why do you think the compensation plans differ at the two firms? In particular, why do you think

Kaufmann’s pays commissions to salespeople, while Parkleigh does not? Why does Parkleigh offer

employees discounts on purchases, while Kaufmann’s does not?

2. Assume, for the moment, that neither store pays sales commissions. Parkleigh offers an hourly wage

plus the employee discount. Kaufmann’s offers only an hourly wage. Do you expect Kaufmann’s hourly

wage to be higher or lower than Parkleigh’s? Why?

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