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You are the manager of DDMSS (Door-to-Door Medicare Supplement Sales, Inc

Marketing

You are the manager of DDMSS (Door-to-Door Medicare Supplement Sales, Inc.) in Florida. Each salesperson is paid a base salary plus a percentage of the revenues she or he generates. In addition, each salesperson drives his or her car to and from each sales call and is reimbursed $0.40 per mile driven. On average, each salesperson drives about 150 miles per day and 240 days per year.

As manager of DDMSS, how might you restructure the compensation of your sales force to enhance your profits? Are there any potential disadvantages to your plan? Explain.

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