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 5 31,500,000 Cost of goods sold 5 17,840,000 Variable Fixed 2,830,000 20,270,000 Gross margin Selling and marketing expenses 11,230,000 8,190,00 2,045,000 Fixed costs 10,235,000 Operating income 5 995,000 Klyne is considering hiring its own sales staff to replace the network of agents. Klyne will pay its salespeople a commission of 15% and incur fixed costs of $2,091,000 Required: 1. Calculate Klyne Corporation's break-even point in sales dollars for the year 2017. Round your answer to 2 decimal places.) Break-even point 2. Calculate Klyne Corporation's 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.) Break-even point 3. Calculate the degree of operating leverage at sales of $31,500,000, considering (a) Klyne uses sales agents and (b) Khyne employs its own staff. Describe the advantages and disadvantages of each alternative. (Round your answers to 2 decimal places.) Using sales agent Employing own sales staff 4. If Klyne increases the commission paid to its sales staff to 20%, 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.) Revenue (in dollars)