MartinMartin Corporation manufactures housewares products that are sold through a network of external sales agents. The agents are paid a commission of 1818% of revenues. MartinMartin is considering replacing the sales agents with its own salespeople, who would be paid a commission of 1010% of revenues and total salaries of $ 2 comma 400 comma 000$2,400,000. The income statement for the year ending December 31, 20172017, under the two scenarios is shown here. LOADING... (Click the icon to view the income statements.) Read the requirements LOADING... . Requirement 1. Calculate MartinMartin's 20172017 contribution margin percentage, breakeven revenues, and degree of operating leverage under the two scenarios. Begin by calculating MartinMartin's 20172017 contribution margin percentage. Determine the formula, then enter the amounts to calculate the percentage. (Round the percentage to the nearest whole percent.) Contribution / = margin % Using Sales Agents / = % Using Own Sales Force / = %

Martin Corporation
Income Statement
For the Year Ended December 31, 2017
	Using Sales Agents		Using Own Sales Force
Revenues		$30,000,000		$30,000,000
Cost of goods sold
Variable	$14,100,000		$14,100,000
Fixed	2,770,000	16,870,000	2,770,000	16,870,000
Gross Margin		13,130,000		13,130,000
Marketing costs
Commissions	$5,400,000		$3,000,000
Fixed costs	3,075,000	8,475,000	5,475,000	8,475,000
Operating income		$4,655,000		$4,655,000