Question 2: AgroPharm Corp. manufactures pharmaceutical products that are sold through a network of external sales agents. The agents are paid a commission of 18% of revenues (i.e., a variable cost) and a fixed total basic salary of $5,250,000. Agropharm is considering replacing the sales agents with its own salespeople, who would be paid a commission of 12% revenues and a fixed total basic salary of $7,950,000. The income statement for the year ending December 31, 2020, under the two scenarios is shown here: (see the columns under "Using Sales Agents" vs those under "Using Own Sales Force"). AgroPharm Corporation Income Statement For the Year Ended December 2020 Using Sales Agents Using Own Sales Force Revenues $45,000,000 $45,000,000 Cost of Goods Sold: Variable portion $15,750,000 $15,750,000 Fixed portion 5,425,000 21,175,000 5,425,000 21,175,000 Gross Margin 23,825,000 23,825,000 Marketing costs: Commissions $8,100,000 $5,400,000 Fixed costs 5,250,000 13,350,000 7,950,000 13,350,000 Operating Income $10,475,000 $10,475,000 Required: Calculate the company's 2020 contribution margin ratio, break-even revenues, and the degree of operating leverage under the two scenarios, respectively