Heirloom Photos sells a $900 photography plan to rural customers using a commissioned sales force. Rather than pay the price up front, most customers pay $250 down and make 36 monthly payments of $25 each. The $900 plan includes the following: A coupon book good for one free sitting every six months for the next five years (10 sittings) at any Heirloom-approved photo studio. The customer receives one free 11-by-14-inch black-and-white print. Additional photos or color upgrades can be purchased at the photographer’s retail prices. To preserve the 11-by-14-inch photos, the family name is embossed in 24-carat gold on a leather-bound photo album. The embossed leather album, with a retail value of $300, costs Heirloom $75. Each sitting and free 11-by-14-inch print, with a retail value of $150, costs Heirloom only $50 because photographers are given exclusive rights to all Heirloom customers in a geographic region and have the opportunity to offer customers upgrades to color and/or more pictures. The commissioned sales staff is paid on the 10th of each month, based upon the prior month’s sales. The commission rates are as follows: Number of plans sold commission quantity bonus Fewer than 100 $100 per plan none 101 to 200 $125 per plan On sale of #101 $2500 is paid to cover the extra $25 on the first 100 sales More than 200 150 per plan On sale of #201, $5000 is paid to cover the extra $25 on the first 200 sales