The inventory purchasing manager is solely responsible for the purchasing of inventory in its HomeStore. When the purchasing manager sees that the inventory of towels is low in its HomeStore, the purchasing manager buys more inventory. In both Year $2$ and Year $3,$ the purchasing manager consistently paid significantly higher than market value for inventory received from their vendor, Softproducts. Softproducts had an oral agreement with the purchasing manager to pay commission to the purchasing manager of $8\%$ of the sales price. HomeStore is unaware of this agreement and the purchasing manager utilizes the commission from Softproducts