I'd be grateful if someone could show how to approach this management accounting problem. Thanks in advance.

Crescent Corporation manufactures multi-function photocopiers that are sold to businesses through a network of independent sales agents located in the United States and Canada. These sales agents sell a variety of products to businesses in addition to Crescent's multi-function photocopiers. The sales agents are currently paid a 19% commission on sales, and this commission rate was used when Crescent's management prepared the following budgeted income statement for the upcoming year: $ 15,000,000 $ $ 8,400,000 1,400,000 Sales Cost of goods sold: Variable Fixed Gross Margin Selling and administative expenses Commisions Fixed advertising expense Fixed administrative expense $ $ 9,800,000 5,200,000 $ $ $ 2,850,000 400,000 1,600,000 $ 4.850,000 Operating income $ 350,000 Since the completion of the above statement, Crescent's management has learned that the independent sales agents are demanding an increase in the commission rate to 22% of sales for the upcoming year. This would be the third increase in commissions demanded by the nt sales agents in five years. As a result, Crescent's management has decided to investigate the possibility of hiring its own sales staff to replace the independent sales agents. Crescent's controller estimates that the company would have to hire six salespeople to cover the current market area, and the total annual payroll cost of these employees would be about $350,000, including benefits. The salespeople would also be paid commissions of 12% of sales. Travel and entertainment expenses are expected to total about $200,000 for the year. The company would also have to hire a sales manager and support staff, whose salaries and benefits would total $100,000 per year. To make up for the promotions that the independent sales agents had been running on behalf of Crescent, management believes that the company's budget for fixed advertising expenses with the new sales force should be increased by $250,000 Required: 1. Assuming sales of $15,000,000, construct a budgeted contribution format income statement for the upcoming year for each of the following alternatives, include break even in sales dollars: a. The independent sales agents' commission rate remains unchanged at 19%. b. The independent sales agents' commission rate increases to 22%. C. The company employs its own sales force. 3. Calculate Crescent Corporation's margin of safety for scenario A (19% commission) above if the expected sales were to drop by 10%? Refer to your answer to 1(a) above. If the company employs its own sales force, what sales in dollars that would be necessary to generate the same operating income the company would realize if sales are $15,000,000 and the company continues to sell through agents (at a 19% commission rate)? 5. Determine the volume of sales at which operating income would be equal regardless of whether Crescent Corporation sells through agents (at a 22% commission rate) or employs its own sales force