Klyne Corporation manufactures pharmaceutical products that are sold through a network of sales agents. The agents are paid a commission of 12% 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 Cost of goods sold Variable $ 22,050,000 Fixed 2,635,000 $ 35,000,000 24,685,000 10,315,000 Gross margin Selling and marketing expenses Commissions Fixed costs 4,200,000 1,870,000 6,070,000 Operating income $ 4,245,000 Klyne is considering hiring its own sales staff to replace the network of agents. Klyne will pay its salespeople a commission of 12% and incur fixed costs of $2,098,000. 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 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 $35,000,000, 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.) Degree of operating leverage Using sales agent Employing own sales staff 4. If Klyne increases the commission paid to its sales staff to 10%, 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)