Assume you were a recently hired new regional sales manager. Your senior management were not satisfy with the sales in the past 2 years. You would like to motivate your salespeople by changing the compensation plan, which is a straight salary plan. Your assistant manager hel ped you to develop the following plan for your review.

Plan A: Fixed salary of $14,000 per ! month. When the salesperson reaches the sales volume of $1,000,000 during the yea ar, an incentive bonus of 3% of all sales made during the year will be awarded. No bonus for annual sales volume below $1,000,000.

Plan B: Fixed salary of $10,000 plus an 5% commission on all sales per month.

Plan C: Monthly commission of 20% on all sales made. No basic salary provided.

Analyse the pros and co ns of each plan and make your selecttion with justifications.