Sarah must decide whether to launch a new mascara or a new eyeliner. The new mascara has a 35% chance of being a big success and generating profits of $18 million, a 45% chance of being fairly successful and generating profits of $9 million, and a 20% chance of being a costly failure and losing $5 million. Lunching an eyeliner would generate profits of $10 million for sure. Sarahs contract gives her a bonus of 15% of any profits above $6 million arising from this decision. If Sarah is risk neutral and cares only about her own income, what is her decision about launching mascara or eyeliner? Should shareholders be happy with this compensation contract? Is there a contract that would be better for both Sarah and the shareholders?