Whalley \& Co manufacture medical wraps, which are sold through a leading medical supply company, MedCo. Whalley \& Co pays MedCo a 22% commission on sales. You have been provided with Whalley \& Co's statement of income for the year ending December 31, 2021: Whalley \& Co are considering bringing the sales function in-house and using their own sales agents. Under this arrangement, Whalley \& Co would pay its agents 10% commissions on sales and incur additional fixed costs of $5,040,000. 1. Calculate Whalley \& Co's 2021 contribution margin percentage, breakeven revenues, and degree of operating leverage under each of the two scenarios. Note that you will first have to re-cast the 2021 statement of income, assuming that Whalley \& Co have decided to hire its own sales agents. 2. Discuss the advantages and disadvantages of each type of sales alternative - using MedCo's sales team and using Whalley \& Co's in-house sales team. 3. In 2022, Whalley \& Co decide to use its own in-house sales team. They are not satisfied with the 10% commission and have requested a 20% commission. If all other costbehaviour patterns remain the same (i.e. no change), how much revenue must the inhouse salespeople generate in order to earn the same operating income as 2021