Crane Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a

commission of $19\%$ of sales. The income statement for the year ending December $31,2025,$ is as follows.

The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of $10\%$

and incur additional fixed costs of $$6,444,000.$

$($a$)$

Your answer is correct.

Under the current policy of using a network of sales agents, calculate the Crane Beauty Corporation's break$-$even point in sales

dollars for the year $2025.$

Break$-$even point $

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$($b$)$

Your answer is correct.

Calculate the company's break$-$even point in sales dollars for the year $2025$ if it hires its own sales force to replace the network of

agents.

Break$-$even point $

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$($c$1)$

Your answer is correct.

Calculate the degree of operating leverage at sales of $$71,600,000$ if $(1)$ Crane Beauty uses sales agents, and $(2)$ Crane Beauty

employs its own sales staff. $($Round answers to $2$ decimal places, e$.$g$.1\mathrm{.}25.)$

$(1)$ Crane Beauty uses sales agents

$(2)$ Crane Beauty employs its own sales staff

Calculate the estimated sales volume in sales dollars that would generate an identical net income for the year ending December

$31,2025,$ regardless of whether Crane Beauty Corporation employs its own sales staff and pays them an $10\%$ commission or

continues to use the independent network of agents. $($Hint: Set up an equation, with the net income formula employing

independent agents as one side of the equation and the net income formula employing the company's own sales staff as the other

side of the equation. Before solving, eliminate those aspects that are the same on each side of the equation as they do not vary

under the two alternatives.