Managers of Oriole Distributors are evaluating the compensation system for the company's sales personnel. Currently, the two salespeople have a combined salary of $72,207 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 $62,207 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 $1,068,276 Salary and 5% commission $ 1,137,272 12% commission $1,313,556 (a) Write the cost equations for the current compensation system and both alternative compensation structures. (Round unit cost to 2 decimal places... 32.78. Ir the cos equation has no variable or fixed componenter for the amounts) Current system 1068276 sales) + S 22202 Salary and 5% commission 1137272 62207 x sales) 12% commission 1313556 x sales) - $ (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 o decimal places, 5,725.) Salary and 5% commission 12% commission Current system $ 1068276 Sales revenue $ 1137272 Cost of goods sold Gross profit Compensation expense Operating income The most profitable pay system is 12% commission