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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

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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: 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.) 2. Calculote Klyne Corporation's break-even point in sales dollars for the yeat 2020 if the company had hired its own sales force to replace the network of agents. (Round your answer to 2 decimal places.) 3. Calculate the degree of operating leverage at sales of $33,000,000, considering (o) Klyne uses sales agents and (b) Klyne employs its own staff. Describe the advantages and disadvantages of each altemative. (Round your answers to 2 decimal places.)

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