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Sunshine Groceries operates a rapidly expanding chain of retail grocery stores in Europe.

Sunshine Groceries operates a rapidly expanding chain of retail grocery stores in Europe. The company has grown from 10 stores in 2009 to 50 stores in 2011 and plans to add at least 10 stores each year for the next 3 years. Top executives at the company can earn annual cash bonuses of up to 200% of salary if board-approved sales growth goals are achieved.

Explain why it might make sense for this company to award bonuses based on sales growth. How might this approach encourage poor business decisions when compared to a bonus plan tied to earnings?
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Accounting - 8367629.doc

Solution;
The retail company is trying to expand its market reach and has a strong focus on growth which
they focus on achieving through expanded growth and sales of the company for which they...

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