VI. Night Key Sporting Goods Company, a wholesale company, engages independent sales agents to market the company's products throughout the country. These agents currently receive a commission of 20% of sales, but they are demanding an increase to 25% of sales made during the year ending December 31, 2019. The controller already prepared the 2019 Budget before learning of the agents' demand for an increase in the commission. The Budgeted 2019 Income Statement items are as follows: Sales 10,000,0000 Material Cost 3,000,000 Labor Coste 2,000,000 Manufacturing Overhead Cost (VC/FC) 1,050,000 General and Administrative Expenses 50,000 Selling Expenses (VC/FC) 2,000,000 Income tax (30%) 570,000 The company's Purchasing Department only purchases raw materials when there is a demand from the Production Department. The Factory Supervisor is in- charge of recruitment and training of factory workers. He only hires workers when labor is needed for production. Manufacturing overhead of P50,000 does not directly vary with sales. General and Administrative Expenses are fixed. However, the company's management is considering the possibility of employing full-time field sales personnel:- An estimated monthly salary of P2,500 plus 5% of sales commission will be given to each three field sales personnel. In addition, a sales/office manager would be employed at a fixed salary of P160,000 per year. All other fixed costs, as well as the other variable cost percentages, would remain the same as the estimates in the prepared 2019 budgeted income statement. . Answer the following questions: Show computations to justify your answer. (20 pts) 1. If the company employs its own sales personnel, what is the estimated break-even point in peso sales for the year-ending December 31, 2019?- 2. If the company continues to use independent sales agents and agrees to their demand for a 25% sales commission, what is the volume in peso sales that would be required for the year ending December 31, 2019, to yield the same net income as projected in the budgeted income statement? an 3. What is the estimated volume in peso sales that would identical net income for the year ending December 31, 2019, regardless of whether the company employs its own sales personnel or continues to use the independent sales agents and pays them a 25% commission? (Hint: Cost of option) 4. If the company will employ its own sales personnel, what is the maximum budgeted sales amount in pesos that the company can accept to avoid an undesirable financial performance in 2019? (Hint: margin of safety)