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# Dunder Mifflin Company is a paper and office-supply distributor. They recognize that there are two types of sales people: An H-type sells \$10,000 worth of supplies per month; an L-type sells \$6,000.

Dunder Mifflin Company is a paper and office-supply distributor. They recognize that there
are two types of sales people: An H-type sells \$10,000 worth of supplies per month; an L-type
sells \$6,000. The alternative wages of these two types are \$4,000 per month for the L-types and
\$4,800 per month for the H-types. A minimum wage law requires that each employee must get a
base salary of at least \$1,200 per month. The company offers a monthly pay of w = \$1,200 + by,
where b is a piece-rate and y is the monthly sales made by the given employee. Which of the
following values for b will attract the H-types but discourage the L-types from applying? (SHOW FULL STEPS PLEASE)

A. b = 0.15
B. b = 0.25
C. b = 0.3
D. b = 0.38
E. There is no value for b such that only the H-types are attracted.

Jul 07 2021 View more View Less