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Please help me answer this question d) Explain the reasons...

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Accounting

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d) Explain the reasons in favour giving the store manager a commission in line with the Marketing Director's proposal. In your answer indicate how far you feel the Financial Director is right to be concerned about the potential effect on overall company profits. (40 marks) Here we expect students to use the calculations above and the information given in the case to form a discussion and a well formulated argument. Normal essay based criteria in terms of making a clear and well structured argument apply. We expect the students to discuss one or several of the following issues (other aspects may apply and if relevant should be rewarded): - The use of CVP and its strengths and limitations, including its assumptions - Uncertainly of entering new market and hiring new staff - Motivational aspects of targets set, both +/- - Possible de-motivation of other store mangers - Impact on overall profit (compulsory)

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