With explanation please

Managers of Sunland Distributors are evaluating the compensation system for the company's sales personnel. Currently, the two salespeople have a combined salary of $ 52.600 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 $ 21.300 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 $ 913,000 Salary and 5% commission 5 1.126,000 25% commission $ 1.326,000 (a) Write the cost equations for the current compensation system and both alternative compensation structures. (Round percentages to 2 decimal places, es. 0.04. If the cost equation has no variable or fixed component, enter for the amounts.) 03 sales) + S 52600 Currentsystem The company is considering two alternatives to the current compensation system. The best alternative is to reduce total salaries tos 21,300 and increase the sales commission to the second alternative is to eliminate the salaries and pay a 25% sales commission Sales projection under exhof the compensation systems are as follows: Current system $ 913.000 Salary and commission $ 1.126.000 25xi commission $ 120.000 (a) Write the cost equations for the current compensation system and both alternative compensation structures. Round percentages to decimal poses 0.04 the cost equation has no variable or fixed component enter for the amounts: Current system Sales 2.00 Salary and scommission - 238 commission (b) Given Sunland'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. 13.0.06 and final answers to O decimal places, 5.725.) Current system Salary and 5% commission 25% commission Sales revenue $ Cost of goods sold Gross proht Compensation expense Operating income 25 commission Current Start.com su The most profitable bay systems