Ruth, the owner of a used car dealership, is working on compensation plans for her employees. She is trying to evaluate how a commission-based versus salary-based workforce would affect her bottom line. In considering her options, she finds basic financial information of two companies with similar year-end performance but different compensation plans-perfect examples to help her with her evaluation! Company X uses a commission-based approach, where its sales staff operates exclusively on commission. Company Y, on the other hand, pays its sales staff a flat salary with no commission. Here are the basics for each company. Company X Company Y Current sales volume 10,100 units 10,100 units Selling price $55 $55 Variable cost per unit $22 $11 Fixed costs $111,100 $222,200