Use below information for Questions 1 to 3:

Company X manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission at a percent of sales basis. Partial income statement for the year ending Dec 31, 2017, is as follows:

Item	Amount (TL)
Sales COGS	77,000,000
Variable	31,530,000
Fixed Selling and marketing expenses	8,610,000
Commissions	13,570,000
Fixed costs	10,260,000

The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 8.60% and incur additional fixed costs of TL7,570,000.

1. Calculate the degree of operating leverage at sales TL77,000,000 if the company uses sales agents.
2. Assume the company employs its own sales staff. Calculate the change in net income if sales decrease by10%.
3. Calculate the estimated sales volume in sales TL that would generate an identical net income for the yearending December 31, 2017, regardless of whether the company uses sales agents or employs its own sales staff.