Exercise 2-12 * Your answer is incorrect. Try again. Managers of Oriole Distributors are evaluating the compensation system for the company's sales personnel. Currently, the two salespeople have a combined salary of $79,191 per year and earn a 3% sales commission. The company is considering two alternatives to the current compensation system. The first alternative is to reduce total salaries to $69,191 and increase the sales commission to 5%. The second alternative is to eliminate the salaries and pay a 12% sales commission. Sales projections under each of the compensation systems are as follows: Current system $ 1,053,376 Salary and 5% commission $ 1,149,592 12% commission $ 1,264,668 (a) Write the cost equations for the current compensation system and both alternative compensation structures. (Round unit cost to 2 decimal places, e.g. 52.75. If the cost equation has no variable or fixed component enter 0 for the amounts.) Current system x sales) + $6 Salary and 5% commission x sales) + $6 12% commission x sales) + $1 (b) Given Oriole's sales projections, and assuming that the cost of goods sold is equal to 30% of sales, which pay system would be the most profitable one for the company? Ignore all other costs. (Round unit cost to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, 5,725.) Current system Salary and 5% commission 12% commission X $ x x The most profitable pay system is : 12% commission