Below questions are based on Arck Systems cases.

1. Under a progressive commission scheme such as the one on Lux, what would the salesperson be likely to do in terms of offering price discounts if the quarter were going very well in customer orders? Explain the salesperson's incentive for this action.
2. Describe what the salesperson would be likely to do in terms of offering discounts to customers if the quarter were not doing well in customer orders. Explain your answer.
3. What does the company do in terms of limiting salespersons' pricing authority? To work around this restriction, what did Lamar Snow do with his sales to Pretorial Health Care?
4. Suppose Mr. Snow offered a price discount of 85% on the total sales amount to Pretorial is $63M. What is the total amount of dollar discounts offered to Pretorial?
5. If Mr. Snow were not being strategic by gaming the system, the price discount would only have been 45%. How much would the company have saved?
6. By increasing the commission rate for average salespeople, the firm decides to greatly reduce the top commission rates but increase the low commission rates in its progressive commission system. Explain why, then, even average salespeople at the firm leave in flocks.
7. Include a brief summary of the case about the company's situation and your recommended decisions or actions.