In response to how the sale incentives might be contributing to falling profits despite growing sales, Chan Company controller has produced the following information on last years sales to two customers that purchased a variety of products from the company:

	Carlson	Donner
Sales	$450,000	$400,000
Cost of goods sold	$180,000	$80,000
MSDA expenses, excluding sales commissions	$320,000	$65,000

A.) Which customer is more profitable for the company?

B.) Compare a sales incentive scheme that pays 2% of sales revenue to an incentive scheme that pays 4% of customer profit. How will each scheme affect saleperson's desire to increase sales to each customer?