DE HRPD_X DDD HRPD_7 X GSentenceDE RESEARX M Inbox ( X _ Untitled x E Untitled x @ Wordtu X D2L McGrav X Question X THINK X Course x + X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q Sign in . . . Module 9 - Chapter 8 Saved Help Save & Exit Submit Check my work 3 Klyne Corporation manufactures pharmaceutical products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The income statement for the year ending December 31, 2020, is as follows: 10 KLYNE CORPORATION points Income Statement For the Year Ending December 31, 2020 Sales $ 29, 000,000 Cost of goods sold O Variable $13, 050, 000 Fixed 2,929, 820 15,979, 820 eBook Gross margin 13, 020, 180 + Selling and marketing expenses Commissions 5,220, 000 Fixed costs 3,540, 000 8, 760, 000 Print Operating income 4, 260, 180 References Klyne is considering hiring its own sales staff to replace the network of agents. Klyne will pay its salespeople a commission of 10% and incur fixed costs of $2,080,000. Required: 1. Calculate Klyne Corporation's break-even point in sales dollars for the year 2020. (Round your answer to 2 decimal places.) Break-even point 2. Calculate Klyne Corporation's break-even point in sales dollars for the year 2020 if the company had hired its own sales force to replace the network of agents. (Round your answer to 2 decimal places.) Break-even point 3. Calculate the degree of operating leverage at sales of $29,000,000, considering (a) Klyne uses sales agents and (b) Klyne employs its own staff. Describe the advantages and disadvantages of each alternative. (Round your answers to 2 decimal places.) Mc Hill Type here to search O EN 10 C Clear 1 6 0 0 X ENG 5:41 PM 11/9/2022DE HRPD_X DDD HRPD_7 X GSentence RESEARX M Inbox ( X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q Sign in . . . Module 9 - Chapter 8 i Saved Help Save & Exit Submit Check my work 3 Break-even point 10 points 2. Calculate Klyne Corporation's break-even point in sales dollars for the year 2020 if the company had hired its own sales force to O replace the network of agents. (Round your answer to 2 decimal places.) Book + Break-even point Print References 3. Calculate the degree of operating leverage at sales of $29,000,000, considering (a) Klyne uses sales agents and (b) Klyne employs its own staff. Describe the advantages and disadvantages of each alternative. (Round your answers to 2 decimal places.) Degree of Operating Leverage Using sales agent Employing own sales staff 4. If Klyne increases the commission paid to its sales staff to 15%, keeping all other costs the same, how much revenue (in dollars) would Klyne have to generate to earn the same operating income it did in 2020? (Round your answer to 2 decimal places.) Revenue (in dollars) Mc Hill Type here to search O EI EN 10 C Clear 1 6 0 0X ENG 5:41 PM 11/9/2022