$|$The Lombard Company produces and sells office$-$space dehumidifiers to companies

that own or rent office space.

$($a$)$ Lombard's materials and labor costs for producing the dehumidifiers are $$3,000$

per unit and the fixed costs of its dehumidifier production plant are $$1\mathrm{.}85$ million. If

Lombard sells a dehumidifier for $$5,000$ per unit, what is its percent contribution

margin? Show your work.

$($b$)$ If Lombard used revenue$-$based compensation to pay its sales force, what would

be a salesperson's sales credit for selling $20$ dehumidifiers at a price of $$4,500?$ Show

your work.

$($c$)$ If Lombard used the profit$-$based compensation method described in the course

to pay its sales force and sets the dehumidifier's target price at $$5,000$ per unit, what

would be a salesperson's sales credit for selling $20$ dehumidifiers at a price of

$$4,500?$ Show your work.

$($d$)$ Explain the benefit to Lombard's management of using the profit$-$based

compensation method of Part $($c$)$ over revenue$-$based compensation for its sales

force.