11 Basil company produces special raincoats. Their manufacturing overhead costs are all fixed. The cost structure of all expenses are inflexible, except sales force cost. The company has no sales force of its own; at the moment, it relies completely on independent sales agents to market its products Starting in 2018, Basil is considering employing its own sales force. In their plan, salespersons will be paid a small fixed salary and a commission lower than the current. Compared with year 2017, such a plan will increase the fixed marketing expenses but reduce commissions as follows 2018 11% 2,260 2017 19% S 1,060 Commission rate of Sales Total fixed marketing expense The statement of year 2017 follows Heron Company Income Statement 12/31/2017 S 20,250 6,075 2.940 S 6,327.50 Sales cost Indirect manufacturing costs Net operating income Determine the 2018 sales at which net income would be equal regardless of whether Basil Company sells through agents (at the 2017 commission rate) or employs its own sales force (as the 2018 plan suggested). Choose the closest answer A S51,750 S 15,000 S 28,250 S 20,250 E.S 19,538