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9 Heron Company is a small but growing manufacturer of telecommunications equipment. Their manufacturing overhead costs are all fixed. The cost structure of all expenses are inflexible, except sales force cost. The company has no sales force of its own; at the moment, it relies completely on independent sales agents to market its products. Heron is considering employing its own sales force. In the proposed plan, salespersons will be paid a small fixed salary and a commission lower than the market. Compared with the current budget, such a change will increase the fixed marketing expenses but reduce commissions as follows: Proposed Current Commission rate 12% 20% of Sales Total fixed marketing expense $ 1,060 $ 260 Tammy Shahaf, Heron's controller, has just prepared the company's budgeted income statement for 2016 under the current plan for salesforce. The statement follows: Heron Company Budgeted Income Statement 12/31/2016 Sales $ 20,250 Direct materials 2,025 Direct labor 4,050 Fixed manufacturing overhead 2,940 Net operating income $ 6,925 Determine the sales at which net income would be equal regardless of whether Heron Company sells through agents (at the current commission rate) or employs its own sales force. Choose the closest answer. A. $ B. $ C. $ 46,750 18,836 13,250 20,250 10,000 D. E. $ $