value 10.00 points Marston Corporation manufactures disposable thermometers that are sold to hospitals through a network o independent sales agents located in the United States and Canada. These sales agents sell a variety of products to hospitals in addition to Marston's disposable thermometer. The sales agents are currently pa an 17% commission on sales, and this commission rate was used when Marston's management prepared the following budgeted absorption income statement for the upcoming year Marston Corporation Budgeted Income Statement S 31,000,000 Sales Cost of goods sold Variable Fixed 17,400,000 2,700,000 20,100,000 Gross margin Selling and administrative expenses Commissions 10,900,000 5,270,000 750,000 3,100,000 9,120,000 Fixed advertising expense Fixed administrative expense Net operating income S 1,780,000 Since the completion of the above statement, Marston's management has learned that the independent sales agents are demanding an increase in the commission rate to 19% of sales for the upcoming year This would be the third increase in commissions demanded by the independent sales agents in five years. As a result, Marston's management has decided to investigate the possibility of hiring its own sales staff to replace the independent sales agents Marston's controller estimates that the company will have to hire eight salespeople to cover the current market area, and the total annual payroll cost of these employees will be about $690,000, including fringe benefits The salespeople will also be paid commissions of 10% of sales Travel and entertainment expenses are expected to total about $340,000 for the year. The company will also have to hire a sales manager and support staff whose salaries and fringe benefits will come to $160,000 per year. To make up for the promotions that the independent sales agents had been running on behalf of Marston, manag eves that the company's budget for fixed advertising expenses should be increased by $490,000 Required 1. Assuming sales of $31,000,000, construct a budgeted contribution format income statement for the upcoming year for each of the following alternatives: a. The independent sales agents' commission rate remains unchanged at 17%. (Input all amount positive values except losses which should be indicated by a minus sign. Leave no cells blan be certain to enter "O" wherever required. Enter your answers in thousands. Round your answers to the nearest whole percent)