I just need the answer to 3.

ACC 350 Marston Corporation manufactures pharmaceutical products sold through a network of 10 Points external sales agents in the United States and Canada. The agents are currently paid an 18% commission on sales: that percentage was used when Marton prepared the following budgeted income statement for the fiscal year ending June 30,2022. Since the completion of the income statement, Marston has learned that its external sales agents are requiring a 5% increase in their commission rate (to 23% ) for the upcoming year. As a result, Marston's president has decided to investigate the possibility of hiring its own internal sales staff in place of the network of sales agents and has asked Tom Markowitz, Marston's controller, to gather information on the costs associated with this change. Tom estimates that Marston must hire cight salespeople to cover the current market arca, at an average annual payroll cost for each employee of $80,000, including fringe benefits expense. Travel and entertainment expense is expected to total 5600,000 for the year, and the annual cost of hiring a sales manager and sales secretary will be $150,000. In addition to their salaries, the eight salespeople will each earn commissions at the rate of 10% of sales. The president believes that Marston also should increase its advertising budget by $500,000 if the eight salespeople are hired. Required 1. A.) Determine Marston Corporation's breakeven point in sales dollars for the fiscal year ending June 30, 2022, if the company hires its own internal sales force and increases its advertising costs. B.) Prove this by constructing a contribution-format income statement. 2. A.) If Marston continues to sell through its network of external sales agents but agrees to pay the higher (23%) commission rate, detemine the breakeven point in sales dollars. B.) At a 23% commission rate what is the estimated volume in sales dollars that would be required to generate the same net income before tax as projected in the budgeted income statement? 3. 2 point bonus: What is the indifference point in sales for the firm to either accept the agents' demand or adopt the proposed change? Which plan is better for the firm? Why? ACC 350 Marston Corporation manufactures pharmaceutical products sold through a network of 10 Points external sales agents in the United States and Canada. The agents are currently paid an 18% commission on sales: that percentage was used when Marton prepared the following budgeted income statement for the fiscal year ending June 30,2022. Since the completion of the income statement, Marston has learned that its external sales agents are requiring a 5% increase in their commission rate (to 23% ) for the upcoming year. As a result, Marston's president has decided to investigate the possibility of hiring its own internal sales staff in place of the network of sales agents and has asked Tom Markowitz, Marston's controller, to gather information on the costs associated with this change. Tom estimates that Marston must hire cight salespeople to cover the current market arca, at an average annual payroll cost for each employee of $80,000, including fringe benefits expense. Travel and entertainment expense is expected to total 5600,000 for the year, and the annual cost of hiring a sales manager and sales secretary will be $150,000. In addition to their salaries, the eight salespeople will each earn commissions at the rate of 10% of sales. The president believes that Marston also should increase its advertising budget by $500,000 if the eight salespeople are hired. Required 1. A.) Determine Marston Corporation's breakeven point in sales dollars for the fiscal year ending June 30, 2022, if the company hires its own internal sales force and increases its advertising costs. B.) Prove this by constructing a contribution-format income statement. 2. A.) If Marston continues to sell through its network of external sales agents but agrees to pay the higher (23%) commission rate, detemine the breakeven point in sales dollars. B.) At a 23% commission rate what is the estimated volume in sales dollars that would be required to generate the same net income before tax as projected in the budgeted income statement? 3. 2 point bonus: What is the indifference point in sales for the firm to either accept the agents' demand or adopt the proposed change? Which plan is better for the firm? Why