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Another problem within this system is that all managers eligible are equally distributed the total amount set aside for a bonus. This means that a manager that sets records for sales and efficiency is awarded the same bonus amount as a manager that barely surpasses performance goals. This does not seem fair.
A good thing is that there is the potential to earn more than 100% of salary as a bonus. Most employees would consider this a very healthy bonus, even though the average sits around 50% of salary.
2. The first thing that must be calculated to find the percentage of salary awarded as bonus for the five divisions is to calculate the economic profit objective...
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