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 ariety of products to hospitals in addition to Marston's disposable thermometer. The sales agents are urrently paid an 15% commission on sales, and this commission rate was used when Marston's management prepared the following budgeted absorption income statement for the upcoming year Marston Corporation Budgeted Income Statement Sales $35,000,000 Cost of goods sold Variable Fixed $17,300,000 2,780,000 20,080,000 14,920,00a Gross margin Selling and administrative expenses Commissions Fixed advertising expense Fixed administrative expense 5,250,000 710,000 3,200,000 9,160,000 $5,760,000 Net operating income Since the completion of the above statement, Marston's management has learned that the independent sales agents are demanding an increase in the commission rate to 17% of sales for the upcoming year. This would be the third increase in commissions demanded by the independent sales gents in five 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