Anne-Marie Fox is the manager of a new and used boat dealership. She has decided to reevaluate the compensation plan offered to her sales representatives to determine whether the plan encourages the dealership’s success. The representatives are paid no salary, but they receive 20 percent of the sales price of every boat sold, and they have the authority to negotiate the boats’ prices as far down as their wholesale cost if necessary.

Required
Is this plan in the dealership’s strategic best interest? Why or why not?