Klyne Corporation manufactures pharmaceutical products that are sold through a network of sales agents. The agents are paid a commission of 22% of sales. The income statement for the year ending December 31, 2017, is as follows: KLYNE CORPORATION Income Statement For the Year Ending December 31, 2017 Sales $ 28,000,000 Cost of goods sold Variable $ 13,720,000 Fixed 2,874,000 16,594,000 Gross margin 11,406,000 Selling and marketing expenses Commissions 6,160,000 Fixed costs 3,320,000 9,480,000 Operating income $ 1,926,000 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 $2,084,000. Required: 1. Calculate Klyne Corporations break-even point in sales dollars for the year 2017. (Round your answer to 2 decimal places.)

2. Calculate Klyne Corporations break-even point in sales dollars for the year 2017 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 $28,000,000, 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.)

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 2017? (Round your answer to 2 decimal places.)

I need answers only for 3 and 4. Kindly help?