Answer the following questions based on the May Segmented Income Statement and Net Income, using data below. What are the key factors (both financial and strategic) that Cathy's Classic Clothes should consider in its evaluation of the proposed bonus plans for Boston and New Haven? Why are these factors important? What is the expected impact, under the proposed bonus structures (including the opt- out of the Portland manager), on your managers' behavior? What is the expected impact, under the proposed bonus structures including the opt- out of the Portland manager), on the financial results for the 3 individual stores, and for the Coastal District as a whole? From a strategic perspective, what are the advantages and disadvantages to implementing multiple different bonus plans (as opposed to one, unified plan)? What are some next steps that you, as the Coastal District Manager, will take, after implementing these plans for the month of May? May Segmented Income Statement $ ELITE CLASSIC CLOTHES: NEW ENGLAND REGION Segmented Income Statement For May Coastal New Haven District Store Sales $ 1,560,000 $ 546.000 Cost of goods sold 635,850 218,400 Gross margin $ 924,150 $ 327,600 Operating expenses: Variable selling $ 93,600 $ 32,760 Variable administrative 39,000 13,650 Boston Store 468,000 187, 2007 280,800 $ $ 28,080 11,700 Other direct expenses: Store maintenance Advertising Rent and other costs 12,100 75,000 180.000 7,200 50,000 54.000 800 6,250 36,000 Indirect expenses: District general administrative expenses Regional general and administrative expenses 185,000 156.000 64.750 52.000 55,500 52.000 Total expenses Operating income S $ 740,700 183,450 $ $ 274,360 53,240 $ $ 190,330 90,470 Portland store's Net Income for May: $10,360