Kindle, Inc. manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 12.5% of sales. The income statement for the year ending December 31, 2019, is as follow. XINDLE IN Sales Cost of goods sold Variable Fixed Gross margin Selling and marketing expenses $130,000 $58,500 14,350 72,850 57,150 Commissions $16,250 Fixed costs 17,100 33,350 Operating income $23,800 F S Q Fil 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 $13,000. Q