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Lionel Corporation manufactures pharmaceutical products sold through a network of sales agents in the United States and Canada The agents are currently paid an 18% commission on sales that percentage was used when Lionel prepared the following budgeted Income statement for the fiscal year ending June 30, 2019 Lionel Corporation Budgeted Income Statement For the Year Ending June 30, 2019 cost of goods sold Variable Fixed Gross profit Selling and administrativ Comissions Fixed advertising cost Fixed administrative cost Operating income Fixed interest cost Income before income taxes Since the completion of the income statement, Lionel has learne that its sales agents are requiring a 5% increase in their commission rate to 233 for the upcoming year. As a result, Lionel's president has decided to investigate the possibility of hiring its own sales staff in place of the network of sales agents and has asked Alan Chen, Lionel's controller to gather Information on the costs associated with this change Alan estimates that Lionel must hire eight salespeople to cover the current market area, at an average annual payroll cost for each employee of $80.000, including fringe benefits expense. Travel and entertainment expenses is expected to total $690,000 for the year, and the annual cost of hiring a sales manager and sales secretary will be $195,000. In addition to their salaries, the eight salespeople wil each eam commissions at the rate of 10% of sales. The president belleves that Lionel also should increase its advertising budget by $590.000 the elght salespeople are hired. Required 1. Determine Lionel breakeven point operating profitot sales dollars for the fiscal year ending June 30, 2019, if the company hires its own salesforce and increases its advertising costs. Prove this by constructing a contribution income statement ore conues to Sethrough its network of sales agents and pays the higher commission rate, determine the estimated volume in sales polls that would be required to generate the operating profitas projected in the budgeted income statement quired Determine Lionel's breakeven point (operating profit = 0) in sales dollars for the fiscal year ending June 30, 2019. If the cor es its own sales force and Increases its advertising costs. Prove this by constructing a contribution Income statement af Lionel continues to sell through its network of sales agents and pays the higher commission rate, determine the estimate sales dollars that would be required to generate the operating profit as projected in the budgeted Income statement Complete this question by entering your answers in the tabs below. Required 1 Required 2 IF Lionel continues to sell through its network of sales agents and pays the higher commission rate, determine the estimated Volume in sales dollars that would be required to generate the operating profitas projected in the budgeted Income statement. Do not round intermediate calculations. Enter your answers in thousands of dollars Estimated volume in res dollars