I need help with this case study.

This idea was used by now defunct socialist country of Soviet Union (now Russia) and it became a good subject of managerial accounting. Tom is a salesman in the defense industry. He sells very expensive high-tech equipment. The defense industry market is very complex. Therefore, questions like \"how many units of sales are considered as a success?\" are very hard to answer for people other than salespeople in this area. As an experienced salesman, Tom knows the market very well. His boss, who had a nancial job until a year ago, knows little about it. Tom is evaluated based on actual sales compared to the goal. The company has allowed Tom to have upper hand and let him set the goal. Tom thinks he can sell 100 units. But he wants to appear hard- working. So he tells the boss that he can sell 90 units, and 90 becomes the goal. Then, he will actually sell 100 units, and the boss will be impressed, thinking that Tom really worked hard and over- achieved the goal. The company has hired Gorky, a compensation/management specialist. He proposed the following compensation scheme. Tom's Compensation = j G + k (A G), if A 2 G (achieving or exceeding goal) 2 j G - m (G - A), if A