Marston Corporation manufactures disposable thermometers that are sold to hospitals through a network of independent sales agents located in the United States and Canada. These sales agents sell a variety of products to hospitals in addition to lvlarston's disposable thermometer. The sales agents are cunently paid an 1H0 commission on sales, and this commission rate was used when lvlarston's management prepared the following budgeted absorption income statement for the upcoming year. Marslon Corporation Budgeted Income Statement Sales 5 30,000,000 l[lost of goods sold: variable 5 1?,300,000 Fixed 2,?30,000 20,030,000 lGross margin 0,9?0000 Selling and administrative expenses: Commissions 5,100,000 Fixed advertising expense Til-0,000 Fixed administrative expense 3,400,000 9,240,000 Net operating income if. T30,000 Since the completion of the above statement, Marston's management has leamed that the independent sales agents are demanding an increase in the commission rate to 10% of sales for the upcoming year. This would be the third increase in commissions demanded by the independent sales agents in ve years. As a result, Marston's management has decided to investigate the possibility of hiring its own sales staff to replace the independent sales agents. Marston's controller estimates that the company will have to hire eight salespeople to cover the current market area, and the total annual payroll cost of these employees will be about $530,000, including fringe benets. The salespeople will also be paid commissions of 10% of sales. Travel and entertainment expenses are expected to total about $350,000 for the year. The company will also have to hire a sales manager and support staff whose salaries and fringe benets will come to $1?0,000 per year. To make up for the promotions that the independent sales agents had been mnning on behalf of Marston, management believes that the company's budget for xed advertising expenses should be increased by $400,000. Required: 1. Assuming sales of $30,000,000, construct a budgeted contribution form at income statement for the upcoming year for each of the following altematives: a. The independent sales agents' commission rate remains unchanged at 1T'ti1. [Input all amounts as positive values except losses which should be indicated by a minus sign. Leave no cells blanit be certain to enter "0" wherever required. Enter your answers in thousands. Round your percentage answers to the nearest whole percent.) a. The independent sales agentsr commission rate remains unchanged at i?%. [Input all amounts as positive values except losses which should be indicated by a minus sign. Leave no cells blanlr. - be certain to enter "" wherever required. Enter your answers in thousands. Round your percentage answers to the nearest whole percent} {Click to select} v s |:| |:| 2e Variable expenses: {Click to select} V 5 {Click to select} Total variable expense |:| |:| 'li: Fixed expenses: {Click to select} Click to select} Click to select} {Click to select} Total xed expenses |:| {Click to select} v s |:| { ( ..--.. II ( h. The independent sales agents' commission rate increases to 19%. {Input all amounts as positive values except losses which should be indicated by a minus sign. Leave no cells blank be certain to enter \"" wherever required. Enter your answers in thousands. Round vour percentage answers to the nearest whole percent} {Click to select} v s |:| |:| e Valiable expenses: {Click to select} {Click to select} Total variable expense |:| |:| 'il'e Fixed expenses: {Click to select} {Click to select} {Click to select} {Click to select} Total xed expenses |:| {Click to select} v a |:| { i on