Customer selection and product pricing

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Reference no: EM133589420

Question

Melissa does not have decision rights over customer selection. The CEO directs her as to which companies to call on. Melissa is allowed, within bounds, to set the price of the product. Suzanne has decision rights over both customer selection and product pricing. Assigning a decision right - a Yes - in the above table means the CEO determined the benefits of assigning the decision right exceeded the cost. Not assigning a decision right - a No - in the above table means the CEO determined the costs of assigning the decision right exceeded the benefit. Explain why the benefits of assigning Suzanne the decision rights over customer selection are likely to exceed the costs while the benefits of assigning Melissa decision rights over customer selection are not likely to be greater than the costs.

Reference no: EM133589420

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