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Compare and contrast output and profits

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Reference no: EM131280866

Suppose a CEO goal is to increase profitability and output from her company by bolstering its sales force and that it is known that profits as a function of output are P=40q-2q2 (in millions of US dollars) Graph the profit function. Compare and contrast output and profits using the following compensation schemes, based on the assumption that sales managers view output and profits as "goods"

A. The company compensates sales managers solely based on output

B. The company compensates sales managers solely based on profits

C. The company compensates based on the combination of output and profits

Provide all calculations with comparison and contrast discussion

Reference no: EM131280866

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