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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 20% 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 20% of sales. The income statement for the year ending December 31,2020 , is as follows: Klyne is considering hiring its own saies staff to replace the network of agents. Klyne will pay its salespeople a commission of 12 ts an incur fixed costs of $2.094,000 Required: 1. Calculate Klyne Corporation's break-even point in sales dollars for the year 2020 . (Round your answer to 2 decimal places.) 2. Calculate Klyne Corporation's break-even point in sales dollars for the year 2020 if the company had hired its own sales force to replace the network of agents, (Round your answer to 2 decimal pioces.) 3. Calculate the degree of operating leverage at sales of $33.000.000, considering (a) KIyne uses tales agents and (b) KIyne empioys its own staff Describe the advantages and disadvantages of each altemative. (Round your answers to 2 dacimnl piaces) would Klyne have to generate to eam the same operating income it did in 2020 (Round your answer to 2 decimol pleces)

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