Use the slides on truth-inducing incentive schemes for this question.

Truth Inducers Corporation has implemented the following bonus scheme for its regional sales managers.The mangers are paid 5% of the sales forecast and a 3% incremental pay for every $ of actual sales in excess of forecast whenever actual sales exceed forecast.However, if actual sales fall below the forecast, the total payment is 5% of the sales forecast minus 7% of the amount by which sales fall below forecast.Under the above scheme, a sales manager, who has private knowledge of expected sales of $10,000, can expect to make a bonus of

$450 when she makes a forecast of $10,000

$480 when she makes a forecast of $11,000

$450 when she makes a forecast of $9,000

$430 when she makes a forecast of $11,000

None of the above