Consider two different monthly bonus plans, A and B, for store managers in a retail chain. Neither plan pays any bonus for sales below the target level. Plan A pays a bonus of 20% of sales in excess of the target. Plan B pays a bonus of 1% of all sales, provided sales meet or exceed the target. Consider a store with a sales target of $300,000. How do the two plans differ in terms of the incentives they create for a store whose sales are

(i) well below the target,

(ii) just below the target

(iii) Above the target?