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Frank's Futons Currently Sells 55 Futons a Month at $450

Question 56

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Frank's Futons currently sells 55 futons a month at $450.00 for a total of $24,750 each month. Frank wants to increase the sales volume and has decided to offer incentives. An employee will have the following bonus schedule and has also placed a monetary value on their marginal effort. This employee will sell 95 futons for a bonus of $250.00 dollars.
Frank's Futons currently sells 55 futons a month at $450.00 for a total of $24,750 each month. Frank wants to increase the sales volume and has decided to offer incentives. An employee will have the following bonus schedule and has also placed a monetary value on their marginal effort. This employee will sell 95 futons for a bonus of $250.00 dollars.

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