Question: On December 30, a manager determines that income is about $9.9 million. The manager has a compensation plan that calls for a bonus of 25

On December 30, a manager determines that income is about $9.9 million. The manager has a compensation plan that calls for a bonus of 25 percent (of salary) if income exceeds $10 million and no bonus if it is below $10 million. What problems might arise with this bonus plan?

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