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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 26% 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 26% of sales. The income statement for the year ending December 31, 2020, is as follows: LYRE CORPORATION In Statement For the Year Ending December 31, 2020 Sales $ 31,500,000 Cont of goods sold Variable $17.640,000 Fixed 2.630.000 20,270,000 Gross margin 11.230,000 Belling and marketing expenses Comisione 8,190,000 Pixed coats 2.045.000 10-225.000 Operating incos 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. Colculate Klyne Corporation's break-even point in sales dollars for the year 2020. (Round your answer to 2 decimal places.) Answer is complete and correct. 25.972222.00 incur foxed costs of $2,091,000. Required: 1. Calculate Klyne Corporation's break-even point in sales dollars for the year 2020. (Round your answer to 2 decimal places.) Answer is complete and correct. 26,072 222.00 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 places.) Answer is complete but not entirely correct. $ 16.279,310.00 3 10 DO 3. Calculate the degree of operating leverage at sales of $31.500.000, 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.) Answer is complete but not entirely correct. Degree of Operating Laverage Using sales agent Employing own sales start 5.70 2.07 4. I 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 2020? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Rerence in dolara 23,625,000.00

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