1. Peaches and Cream Corporation manufactures cosmetic products tht that are sold ugh a network of sales agents. The sales. agents are paid a commission of 16.25% of Peaches and Cream Corporation Income Statement For the Year Ended December 31,2014 Sales 120,000,000 Cost of goods sold Variable Flxed Gross margin Selling and marketing expenses Commissions 19,500,000 Pix 58,500,000 1,000,000 69.500.000 ed costs 10,000,000 29.500,000 Operating income 21,000,000 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 5 % and incur additional fixed costs of 516 million. a. Under the current policy of using a network of sales agents, calculate the Peacl Cream Corporation's break-even point in sales dollars for the year 2014 b. Calculate the company's break-even point in sales dollars for the year 2014 ir!n hires e. Caleulate the degree of operating leverage at sales of $120 million ir (1) Peaches and . If the managers expect a strong economy and 10% increase in sales in the following its own sales force to replace the network of agents, Cream uses sales agents, and (2) Peaches and Cream employs its own sales staff period, which alternative is better? Using sales agent or employing own sales staft