Required:

$1.$ Assuming sales of $$20,000,000,$ construct a budgeted contribution format income statement for the upcoming year for each of the following activities:

a$.$ The independent sales agents commission remains unchanged at $20\%$

b$.$ The independent sales agents commission increases to $25\%$

c$.$ The company employs its own sales force

$2.$ Calculate Crescent Corporation's break$-$even point in sales dollars for the upcoming year assuming the following:

a$.$ The independent sales agents commission remains unchanged at $20\%$

b$.$ The independent sales agents commission increases to $25\%$

c$.$ The company employs its own sales force

$3.$ Refer to your answer to $1($b$)$ above. If the company employs its own sales force, what amount of sales revenue would be necessary to generate the operating income the company would realize if sales are $$20,000,000$ and the company continues to sell through agents $($at a $25\%$ commission rate$)?$

$4.$ Determine the sales revenue at which operating income would be the equal regardless of whether Crescent Corporation sells through sales agents $($at $25\%$ commission rate$)$ or employs its own sales force.

$5.$ Would you recommend the company retain the sales agents at $25\%$ commission or would you recommend that the company employ its own sales force? Provide a detailed explanation to support your recommendation.