In order to maximize the total monthly bonus, the manager should allocate hours toward meeting each of milestones and hours toward meeting each of the remaining sales milestones.
In order to maximize the total monthly bonus, the manager should allocate hours toward meeting each of milestones and hours toward meeting each of the remaining sales milestones.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A convenience store manager earns a base salary plus a small bonus of $60 for each of ten different possible monthly milestones he meets. If the manager meets a milestone, the full bonus is paid. However, if the manager falls even one penny short, none of that bonus is paid. Suppose each of the ten milestones requires 40 hours of effort to meet, and that the manager has 160 hours of effort to allocate to work each month.
In order to maximize the total monthly bonus, the manager should allocate
hours toward meeting each of milestones and
hours toward meeting each of the remaining sales milestones.
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