ACC 350 Marston Corporation manufactures pharmaceutical proclucts sold through a network of 10 Points external sales agents in the Unired States and Canada. The agents are currently paid an 18% commission on sales: that percentage was used when Marston prepared the following budgeted income statement for the fiscal year ending June 30,2022. Since the completion of the income statement. Marston has learned that its external sales agents are requiring a 5 \% increase in their commission rate (to 23 ) for the upcoming year. As a result, Marston's president bas decided to investigate the possibility of hiring its own inlemal sales starf in place of the nelwork of sales agenls and has asked Tam Markowit/, Marston's controller, to gather information on the costs associated with this change. Tom estimates that Maston must hire eight salespeople to cover the current market area. at an average annual payroll cost for each employee of $80,000, including fringe benelits expense. Travel and entertainment expense is expected to total $600,000 for the year, and the annual cost of hiring a sales manager and sales secretary will be $150,000. In addition to their salaries, the eight salespeople will cach carn enmmissions at the rate of 10 S. of sales. The president believes that Marston also should inerease its advertising budget by $56,000 if the cight salesperple are hired. Required 1. A.) Determine Marston Corpration's breakeven point in sales dollars for the fiscal year ending June 30,2022 , if the company hires its own internal sales force and increases its advertising cosis. B.) Prove this by constructing a contribution-format income statement. 2. A.) If Marston continues to sell through its network of external sales agents buc agrees to pay the higher (23%) commission rate, determine the breakeven point in sales dollars. B.) At a 23? commission rate what is the estimated volume in sales dollars that would be required to generate the same net income before tax as projected in the budgeted income statement? -3. 2 point bonus: What is the indifferenee point in sales for the firm to either aeeept the agents' demind or adopt the proposed change? Which plan is hetrer for the firm? Why