ACCUMETAL Steel Company manufactures steel drilling attachments for the oil & gas industry. The company operates multiple steel foundry operations throughout North America. Since the industry is very competitive, ACCUMETAL employs a large sales team that is essential to the growth of the organization.

The sales agents are currently paid a $17\%$ commission on sales, and this commission rate was used when Hanson$$s management prepared the following budgeted income statement for the upcoming year.$($see the image added$)$

Since the completion of the above statement, ACCUMETAL$$s management has learned that the independent sales agents are demanding an increase in the commission rate to $20\%$ of sales for the upcoming year. This would be the third increase in commissions demanded by the independent sales agents in five years. As a result, ACCUMETAL$$s management has decided to investigate the possibility of hiring its own sales staff to replace the independent sales agents.

ACCUMETAL$$s controller estimates that the company will have to hire $7$ salespeople to cover the current market area, and the total annual payroll cost of these employees will be about $$790,000,$ including benefits. The salespeople will also be paid commissions of $12\%$ of sales. Travel and entertainment expenses are expected to total about $$270,000$ for the year. The company will also have to hire a sales manager and support staff whose salaries and benefits will come to $$150,000$ per year. To make up for the promotions that the independent sales agents had been running on behalf of ACCUMETAL, management believes that the company$$s budget for fixed advertising expenses should be increased by $$420,000.$

Required:

Determine the volume of sales at which net operating income would be equal

regardless of whether ACCMETAL sells through agents $($at $20\%$ commission rate$)$ or

employs its own salesforce.

Need the calculation steps and analysis.

ps$.$ Don,t give chatgpt answers