Corporation manufactures pharmaceutical products that are sold through a network of external sales agents. The agents are paid a commission of 16

16% of revenues. BioTech

BioTech is considering replacing the sales agents with its ownsalespeople, who would be paid a commission of 10

10% of revenues and total salaries of $ 1 comma 440 comma 000

$1,440,000. The income statement for the year ending December31, 2013

2013, under the two scenarios is shown here.

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