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Assume that Pittman Company decides to continue selling through agents and pays the 25% commission rate. Determine the volume of sales that would be required
Assume that Pittman Company decides to continue selling through agents and pays the 25% commission rate. Determine the volume of sales that would be required to generate the same net income as contained in the budgeted income statement for next year. (Enter your answer in whole dollars and not in thousands. Round CM ratio to 3 decimal places.) Volume of sales (in dollars) Determine the volume of sales at which net income would be equal regardless of whether Pittman Company sells through agents (at a 25% commission rate) or employs its own sales force. (Enter your answer in whole dollars and not in thousands. Round CM ratio to 3 decimal places.) Volume of sales (in dollars) Compute the degree of operating leverage that the company would expect to have on December 31 at the end of next year assuming a. The agents' commission rate remains unchanged at 20%. (Round your answer to 2 decimal places.) Degree of operating leverage b. The agents' commission rate is increased to 25%. (Round your answer to 2 decimal places.) Degree of operating leverage c. The company employs its own sales force. (Round your answer to 2 decimal places.) Degree of operating leverage
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