Final answer:
The ideal compensation plan for the Retro Butterfly Chair Corp. to provide security, incentive, flexibility, and control is the combination plan, which blends fixed salaries with performance-based commissions. So the correct answer is option D).
Step-by-step explanation:
The sales manager of the Retro Butterfly Chair Corp. who seeks to provide security, incentive, flexibility, and control for the sales force should ideally opt for D. a combination plan.
This type of compensation plan combines aspects of both fixed salaries (which provide security) and variable commissions (which provide incentives based on performance). Such a plan can offer the flexibility to adapt to different sales scenarios and provide the sales manager with control over how much emphasis is placed on salary versus commission.
This blended approach aligns well with the sales manager's goals, offering a base level of income to the sales personnel while also rewarding them for their effort and success.