RUILI Current Attempt in Progress Managers of Oriole Distributors are evaluating the compensation system for the company's sales personnel. Currently, the two salespeople have a combined salary of $53,000 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 $21.500 and increase the sales commission to 5%. The second alternative is to eliminate the salaries and pay a 25% sales commission Sales projections under each of the compensation systems are as follows: Current system $ 915,000 Salary and 5% commission $ 1.130,000 25% commission $ 1,330,000 (a) Write the cost equations for the current compensation system and both alternative compensation structures. (Round percentages to 2 decimal places, e.g. 0.04. If the cost equation has no variable or fixed component, enter for the amounts.) 915,000 sales) + $ 53.000 Current system Salary and 5% commission =( 1.130,000 sales) + $ 21.500 0 25% commission 1,330,000 Xsales) + $ (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 profitableons for the companysnare all other costs (Round percentages to 2 decimal laces es 0.04 and final answer (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 percentages to 2 decimal places, e... 0,04 and final answers to decimal places, 5,725.) Salary and 5% commission 1,130,000 Current system 915,000 25% commission $ $ 1,330,000 Sales revenue Cost of goods sold Gross profit Compensation expense Operating income $ $ $ The most profitable pay system is Salary and 5% commission Current system 25% commission eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer MacBook Air