Costs of Establishing an In-House Sales Department The accounting department estimates need four (4) salespeople at an that Gupta average payroll cost of cover the workload of the current travel agent employee to to hire highly qualified individuals these positions the compensation packag must include commissions To be competitive with the industry-standard commission of the must a 15 percent each flight sold in addition cost in house sales commission on Travel and department include travel costs and support staff. and the annual cost of entertainment expense is expected to total $500,000 (fixed) for the travel agents to relies on the support staff positions will be fixed at Gupta currently an In ord services. Gupta were replace its commissioned services. department, then it would have to bear more its an maintain the company's image and manage the transition from established travel agents to on house sales staff, the accounting department recommends spending SS00,000 (fixed) annually advertising (4) se the December 31, 2016 Income statement (with 150 flights sold) to estimate Gupta's breakeven point in (flights if the company hires its own sales force and increases its units amount of sales revenue would the company advertising costs. Based on your answer, what generate this breakeven point? to its (5) Assume that Gupta decides not to hire its own sales force, but instead consents give the current commissioned travel agents the raise they are demanding. How many flights must company sell (with the new commission rate) to generate the same net income that was reported in 2016? compensating its (6) Management must choose between: (a) hiring its own sales force and (b) current network of travel agents with a higher commission rate force? (i) hat is the profit formula for alternative (a), hiring an in-house sales of the i What is the profit formula for alternative (b), increasing the commission rate current travel agents? indifferent between (iii) At what level of sales volume (in flights would management be would these two alternatives? (Indifference means the sales volume [units] that produce the same profit between the