Heavy Duty Company, a Manufacturer of Power Tools, Decides to Offer

question 97

Multiple Choice

Heavy Duty Company, a manufacturer of power tools, decides to offer a rebate of $130 on its 16-inch mid-range chain saw, which currently has a retail price $490. Heavy Duty's marketers estimate that, as a result of the rebate, sales of this model will increase from 60,000 to 80,000 units next year. The profit margin for Heavy Duty before the rebate is $180. Based on the given information, is the decision to give the rebate a wise one?

• A) No, since costs are $7,800,000 more than benefits.
• B) No, since costs are $6,800,000 more than benefits.
• C) Yes, since the benefits are $3,400,000 more than the costs.
• D) Yes, since the benefits are $7,300,000 more than the costs.

Comprehend the various compensation strategies including pay-for-knowledge, stock-option plans, and open pay systems and their impact on organizational behavior.

Recognize different job evaluation methods and their application in setting compensations.

Identify the types of benefits such as perquisites, life-cycle benefits, and employee assistance plans, and their significance in employee compensation.

Grasp the importance of pay transparency and pay secrecy and their effects on workplace dynamics.

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