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The management of Lantieri Corporation is reviewing its policies concerning compensation of salespersons.The company has four products that use the same constrained resource.Data concerning those products appear below:
The company does not have enough of the constrained resource to satisfy for demand of all four products.
Required:
a.If salespersons are paid commissions that are a set percentage of sales,which product would they prefer to sell? In other words,if it is a choice between selling one unit of one product and one unit of another,which product would they prefer to sell?
b.From the standpoint of the entire company,if it is a choice between sales of one unit of one product versus another,which product should the salespersons emphasize?
Bona Fide Occupational Qualification
A legal term allowing employers to hire employees based on qualities that would typically be considered discrimination if they are reasonably necessary to the normal operation of a particular business.
Job Relatedness
The relevance or connection of a task or requirement to the core functions of a specific job position.
Bona Fide Seniority System
A legitimate system in a workplace that rewards employees based on length of service, often affecting pay and promotions.
Business Necessity
A legitimate, documented reason for a business action that is essential for the operation or survival of the business.
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