For example,if a manager underestimate capacity to be 18000 rather than 20000,and the plant actually produce 16000,her bonus increases from $8000 to $9000. Thus this scheme fails to elicit accurate information about capacity and does not ensure that the plants will be run as efficiently as possible. For example, if a manager underestimate capacity to be 18000 rather than 20000, and the plant actually produce 16000, her bonus increases from $8000 to $9000. Thus this scheme fails to elicit accurate information about capacity and does not ensure that the plants will be run as efficiently as possible