Question $1.$ TEREPETERS SPORTING GOODS COMPANY

Terepeters Sporting Goods Company, a wholesale supply company, engages independent sales agents to market the company's products throughout Ibadan and Lagos. These agents currently receive a commission of $20$ percent of sales, but they are demanding an increase to $25$ percent of sales made during the year ending December $31,2025.$ The controller already prepared the $2024$ budget before leaning of the agents' demand for an increase in commissions. The budgeted $2025$ income statement is shown below. Assume that cost of goods sold in $100$ percent variable cost.

Budgeted Income Statement for the Year Ended December $31,2025.$

$\backslash$table$[[$N$,$N$],[$Cost of goods sold,,$60,000,000$