PLEASE I NEED HELP!!!!

Marston Corporation manufactures multi-function scanners/printers that are sold to businesses through a network of independent sales agents located in Canada. These sales agents sell a variety of products to businesses in addition to Triblata's scanners/printers. The sales agents are currently paid a 19% commission on sales, and this commission rate was used when Triblata's management prepared the following budgeted income statement for the upcoming year.

Sales		15,000,000
Cost of Goods sold:
Variable	8,400,000
Fixed	1,400,000	9,800,000
Gross margin		5,200,000
Selling and admin expenses:
Commissions	2,850,000
Fixed and advertising expense	400,000
Fixed and administrative expense	1,600,000	4,850,000
Operating income		350,000

Since the completion of the above statement, Triblata's management has learned that the independent sales agents are demanding an increase in the commission rate to 22% of sales for the upcoming year. This would be the third increase in commissions demanded by the independent sales agents in five years. As a result, Triblata's management has decided to investigate the possibility of hiring its own sales staff to replace the independent sales agents. Triblata's controller estimates that the company will have to hire six salespeople to cover the current market area, and the total annual payroll cost of these employees will be about $350,000, including benefits. The sales people will also be paid commissions of 12% of sales. Travel and entertainment expenses are expected to total about $200,000 for the year. The company will also have to hire a sales manager and support staff whose salaries and benefits will total $100,000 per year. To make up for the promotions that the independent sales agents had been running on behalf of Triblata, management believes that the company's budget for fixed advertising expenses should be increased by $250,000.

Required questions:

a. Assuming sales of $15,000,000, construct a budgeted contribution-format income statement for the upcoming year for each of the following alternatives:

1.The independent sales agents' commission rate remains unchanged at 19%.

2.The independent sales agents' commission rate increases to 22%.

3.The company employs its own sales force.

b.Calculate Triblata Corporation's break-even point in sales dollars for the upcoming year assuming the following:

1.The independent sales agents' commission rate remains unchanged at 19%.

2.The independent sales agents' commission rate increases to 22%.

3.The company employs its own sales force

c. .Refer to your answer to 1(b) above. If the company employs its own sales force, what volume of sales would be necessary to generate the operating income the company would realize if sales are $15,000,000 and the company continues to sell through agents (at a 22% commission rate)?

d.What are two qualitative issues to consider when making this decision? Explain

e.Determine the volume of sales at which operating income would be equal regardless of whether Triblata Corporation sells through agents (at a 22% commission rate) or employs its own sales force.

f.Prepare a profit graph on which you plot the profits for bothof the following alternatives

1.The independent sales agents' commission rate increases to 22%.

2.The company employs its own sales force.

On the graph, use total sales revenue as the measure of activity

g.Write a memo to the president of Triblata Corporation in which you make a recommendation as to whether the company should continue to use independent sales agents (at a 22% commission rate) or employ its own sales force. Fully explain the reasons for your recommendation in the memo.