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Use below information for Questions 1 to 3 : enses Inc. manufactures tables that are sold through a network of sales agents. The agents are

Use below information for Questions 1 to 3 :
enses Inc. manufactures tables that are sold through a network of sales agents. The agents are paid a commission at a
percent of sales basis. For the year ending December 31,2017,
Sales have been TL85,000,000.
Gross profit margin and operating profit margin have been reported to be 35% and 15%, respectively.
46% of COGS have been variable. Besides, 88% of operating expenditures have been variable sales commissions.
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a
commission of 8.50% and incur additional fixed costs of TL4,580,000.
Q-1) Calculate the degree of operating leverage at sales TL85,000,000 if the company uses sales agents.
Q-2) Saadettin Bey, the owner of enses Inc., considers employing in-house sales staff. Calculate the change in net
income in TL if sales increase by 10% assuming in-house sales staff is employed.
Q-3) Calculate the estimated sales volume in TL that would generate an identical net income for the year ending
December 31,2017, regardless of whether the company uses sales agents or employs its own sales staff.
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