Allison is in charge of one location of Cats Inc. Her location has 20 employees that processes applications by cat owners who want to register their cats with the company. Usually, many applications are waiting to be processed, but unforeseen events not within Allison's control (i.e., ill employees) impacts adversely the number of applications that her location can process. Allison understands the importance of the applications being processed swiftly and correctly. Kevin, the district supervisor to whom Allision reports, bases his evaluation of Allison on the number of applications that are processed. Required: a) Which of the following alternatives would Kevin select to compensate Allison if she is risk averse? Why? (2 marks) i. Flat salary. ii. Straight commission based on the number of applications processed. iii. Flat salary with a bonus based on the number of applications processed. iv. Flat salary with a bonus based on the firm's earnings. b) Why would it not be recommended to use an evaluation method that is based only on the number of processed applications? Why? (2 marks) Allison is in charge of one location of Cats Inc. Her location has 20 employees that processes applications by cat owners who want to register their cats with the company. Usually, many applications are waiting to be processed, but unforeseen events not within Allison's control (i.e., ill employees) impacts adversely the number of applications that her location can process. Allison understands the importance of the applications being processed swiftly and correctly. Kevin, the district supervisor to whom Allision reports, bases his evaluation of Allison on the number of applications that are processed. Required: a) Which of the following alternatives would Kevin select to compensate Allison if she is risk averse? Why? (2 marks) i. Flat salary. ii. Straight commission based on the number of applications processed. iii. Flat salary with a bonus based on the number of applications processed. iv. Flat salary with a bonus based on the firm's earnings. b) Why would it not be recommended to use an evaluation method that is based only on the number of processed applications? Why? (2 marks)