What plan would you recommend for each of the following companies in handling split commissions?

a) A manufacturer of sheets, pillowcases, towels, and related items sells to a department store chain. The order is placed through the chain’s buying offices in New York. Delivery is made to stores throughout the country on an order from the department manager in each store.

The manufacturer’s salespeople call on the units of the chain located in their territories.

b) A manufacturer of oil-well-drilling equipment sells to main offices and drilling locations.

Salespeople in the area where the product is delivered must service the item.