The HighStep Shoe Company operates a chain of shoe stores that sell 10 different styles of inexpensive men's shoes with HighStep Shoe Company is considering an alternative compensation plan; one in which the sales commission identical unit costs and selling prices. A unit is dened as a pair of shoes. Each store has a store manager who is paid a are discontinued and xed salaries are raised by a total of $15,500, Assume the role of the owner of Highstep xed salary. Individual salespeople receive a xed salary and a sales commission. HighStep is considering opening another Shoe Company. store that is expected to have the revenue and cost relationships shown here: E (Click the icon to view the revenue and cost information.) Read the mm' Requlrement 1. As owner, which sales compensation plan would you choose if forecasted annual sales of the new store were at least 10,000? What do you think of the motivational aspect of your chosen compensation plan? Begin by calculating the operating income (loss) under the salary-plus-commission compensation plan. (Use parentheses or a minus sign for a loss.) Operating l income (loss) Breakeven units _ X Data table Reqwrements Contribution margin per unit Fixed costs A B C D 1. As owner, which sales compensation plan would you choose if forecasted . . . . annual sales of the new store were at least 10,000? What do you think of the Quantity Of units sold Unit Variable Data (per pair of shoes) Annual Fixed Costs motivational aspect of your chosen compensation plan? Selling price $ 60.00 Rent 5 30,000 2. Suppose the target operating income is $69,000. How many units must be . . '= . sold to reach the target operating income under (a) the original Variable COSt per um! 005' 0f shoes =5 37-00 Salaries 100900 salaw-plusccmmissicns plan and (b) the higher- xed-salariesonly plan? Sales commission 3_00 Advertising 40,000 Which method would you prefer? Explain briey. 3. You open the new store on January 1, 2017, with the original Variable cost per unit 40-00 Other xed costs 10.000 salary-plummmissicn compensation plan in place. Because you expect the cost of the shoes to rise due to inflation, you place a rm bulk order for Total xed 00518 11,000 shoes and lock in the $37 price per unit. But toward the end of the year, only 9,500 shoes are sold, and you authorize a markdown of the remaining inventory to $50 per unit. Finally, all units are sold. Salespeople, as usual, get paid a commission of 5% of revenues. What is the annual operating income for the store? / a...\" \\ an