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A firm faces two kinds of employees, those able to sell 10 units/year, and those able to sell 5 units/year.
High-productivity employees are willing to work for $100K/year while low-productivity employees are willing to work for only $50K/year. To screen out the low-productivity employees, the firm should?
a. offer a salary of $100K.
b. offer a salary of $75K plus $5K/unit commission.
c. offer a sales commission of $10K/unit.
d. offer a sales commission of $20K/unit on sales above 5 units.
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