"Primaily depreciation on storage facities. commission rate to 20% That's the last straw" Kart replied angrily. Those agents have been demanding more and more, and this lime they've gone too far How can they possibily defend a 20% commission rate?" They claim that afler paving for adverising, travel, and the other costs of promotion. fhere s nothing left over for profit," replied Barbara. $3,225,000 per year, but that woud be more than offset by the $4300000(20%$21,500,000) that we would avoid on agents' commissions: The breakoown of the $3,225,000 cost folows: "Super." replied Kat. "And I noticed that the $3.225.000 equas what we re paying the agents under the old 15% commission rate." "Pus all of these numbers together and we'll strow them to the executive commitiee tomorrow," said Karl. "With the appeoval of the committee, we can move on the matier inmediatehy." Required: 1. Compute Pittman Company's break-even point in dollar sales for next year assuming: a. The agents' commission rate remains unchanged at 15% b. The agents' commission rate is increased to 208 c. The company employs ts own sales force 3. Determine the dollar saies at which net income would be equal regardles5 of whether Pitiman Company sells through agents (at a 20% commission rate) or empiors its own sales force. 4. Compute the degree of operatng leverage that the company wouid expect to have at the end of next year assuming: a. Tae agents commission rate remains unchanged at 15% b. The agents' commission rate is increased to 20% c. The company employs its own sales force Use income before income taxes in your operating leverage computation Complete this question by entering your answers in the tabs below. Compute Pittman Company's break-even point in dollar sales for next year assuming: Note: Found CM ratio to 3 decimal places and final answers to the nearest dollar amount. Complete this question by entering your answers in the tabs below. Assume that Pittman Company decides to continue selling through agents and pays the 20% commission rate. Determine the dollar sales that would be required to generate the same net income as contained in the budgeted income statement for next year. Note: Round CM ratio to 3 decimal places and final answer to the nearest dollar amount. Complete this question by entering your answers in the tabs below. Determine the dollar sales at which net income would be equal regardless of whether Pittman Company sells through agents (at a 20% commission rate) or employs its own sales force. Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Compute the degree of operating leverage that the company would expect to have at the end of next year assuming: (Use income before income taxes in your operating leverage computation.) Note: Round your answers to 2 decimal places