Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 51

Evaluating an Incentive Pay Plan; Strategy Anne-Marie Fox is the manager of a new and used boat dealership. She has decided to reevaluate the compensation plan offered to her sales representatives to determine whether the plan encourages the dealership's success. The representatives are paid no salary, but they receive 20% of the sales price of every boat sold, and they have the authority to negotiate the boats' prices as far down as their wholesale cost if necessary.
Required Strategically, is this plan in the dealership's best interest Why or why not