the agents are paid a commission of18% of sales. The income statement for the year ending December 31, 2020, is as follows.Sales$77,400,000 Cost of goods soldVariable$32,508,000Fixed8,660,000 41,168,000Gross margin$36,232,000

Selling and marketing expensesCommissions$13,932,000Fixed costs10,800,000 24,732,000Operating income$11,500,000.

The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of8% and incur additional fixed costs of $7,740,000. company's break-even point in sales dollars for the year 2020 to replace agents