You are the manager of the Maker's Mark sales division. Currently, tasting room sales staff are paid an hourly wage of $20. However, you are trying to encourage increased sales. You are considering a new pay structure where each salesperson gets $15 an hour plus 1% of the daily profits. Assume each staff person works an 8-hour shift. Suppose your tasting room currently has daily profits of $25,000. How would this impact compensation and profits?

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Under the new pay structure each salesperson would receive a base hourly wage of 15 plus 1 of the da... View the full answer