A cost planning use of Cost-Volume-Profit analysis is to determine the most cost-effective means to manage selling costs. Structuring Sales Commissions Questar Electronics, a producer of a wide range of consumer products, is facing increasing competitive pressures from foreign producers. In response, Questar is reexamining its overall management control system, including the way the company compensates members of its sales force, who currently earn a 10% commission on sales. Below are highly condensed data for two representative products that Questar sells: Selling price per unit Variable manufacturing cost per unit Alpha Omega $100 $125 80 110 Manufacturing contribution margin $ 20 $ 15 Required 1. What is the contribution margin for each product? 2. Which of the company's products will likely be more aggressively promoted by the company's salespeople? Why? 3. Can you suggest an alternative incentive plan, one that would better align employee and corporate interests (i.e., one that would motivate more goal-congruent behavior)?