Pan Company is a small but growing manufacturer of communications equipment. The compeny hes no sales force of Berber Cheney Pomers cartrate, he just prepared the company's budgeted income statement for next year as follows Budgeted Income St Income taxes DRE Ex As Barbara handed the statement to Kar Vac Pens present, she commented, went ahead and used the age completing these statements, but we've at leamed that they refuse to handle our products nest yee s common iste to 20% The raw Kart reped angry. These agents have been demanding more and more, and this time they've gone too f they possibly defend 20% common they claim that after paying he adverting travel and the other costs of prumonon, there's nothing wt iver for profit replied Just pe robbery retanted an "And also says time we dumped those guys and got our own sales force. Can you get your people work un sime cost figures! Wy ady worked then use Barbers "Several compares we know about pays 75% commission to their own salespeople, al pramosos casts, too. We figure our feed expenses would increase by $225,000 per yea that would be more than at by the 13.900.000 (20% $500,000 that we would avoid The bkdown of the $2.925000 cast h