accounting

Corporation manufactures housewares products that are sold through a network of external sales agents. The agents are paid a commission of 19% of revenues. They are considering replacing the sales agents with its own salespeople, who would be paid a commission of 10% of revenues and total salaries of $1980000. The income statement for the year ending December 31, 2019, under the two scenarios is shown here: Using Sales Agents Using Own Sales Force Revenues $22 000.000 $ 22,000.300 Cost of goods sold Variable 9.480.000 8 460,000 Fixed 2 850,000 12.310,000 2,850,000 12.310.000 Gross Margin 9 690,000 9,690,050 Marketing costs Commissions S 4 180.000 2 200,000 Fixed costs 3.648,000 7.828,000 5,628.000 7,828,000 Operating income 5 1.862,000 1,862,000 Calculate 2019 contribution margin percentage, breakeven revenues, and degree of operating leverage under the two scenarios. Describe the advantages and disadvantages of each type of sales alternative. In 2020 the company uses its own salespeople, who demand a 15% commission. If all other cost behavior patterns are unchanged, how much revenue must the salespeople generate in order to earn the same operating income as in 2019