A) Mimi Enterprise is studying the addition of a new product that would have an expected selling price of RM180 and expected variable cost of RM120. Anticipated demand is 9,000 units. A new salesperson must be hired because the company's current sales forces are working at full capacity. Two compensation plans are under consideration: Plan 1: An annual salary of RM 38,000 plus 10% commission based on gross sales dollars Plan 2: An annual salary of RM 180,000 and no commission Required: (i) What is meant by the term "operating leverage"? (ii) (2 marks) Calculate the contribution margin and income of the two plans at 9,000 units (iii) (6 marks) Compute the operating leverage factor of the two plans at 9,000 units. Which of the two plans is more highly leveraged? And explain why? (4 marks)