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what should i do USEK Medical School manufactures the COVID19 Vaccines that are sold through contracted distributors. Those distributors are paid a commission of 18%

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what should i do
USEK Medical School manufactures the COVID19 Vaccines that are sold through contracted distributors. Those distributors are paid a commission of 18% of revenues. USEK Medical School is considering replacing the contracted distributors with its own group of students, who would be paid a commission of 12% of revenues and total salaries of $7.950.000 The income statement for the year ending December 31, 2020, under the two scenarios is shown here. USEK Medical School Income Statement For the Year Ended December 31, 2020 Using contracted Distributors Using Own Group of students $45.000.000 $45,000,000 $15,750,000 $5.425.000 $15.750,000 SS.425.000 Revenues Cost of Goods Sold Variable Fixed Gross Margin Marketing Costs Commissions Fixed Costs Operating Income $21.175.000 $23.825,000 $21.175.000 $23,825,000 $8.100,000 $5.250.000 55,400,000 $7.950.000 $13.350.co $10.475,000 $13.350.000 S10,475,000 Required: 1. Calculate USEK Medical School's 2020 contribution margin percentage, breakeven revenues, and degree of operating leverage under the two scenarios. 2. If CM(u) is $52.43 under the first scenario, and $45 under the second scenario, find the breakeven point in quantity, the total quantity sold, the selling price per unit, and the variable cost per unit under both scenarios 3. Describe the advantages and disadvantages of each type of sales alternative. Build your answers based on the effect of the DOL on the Operating Income under both scenarios with: a. 10% increase in sales b. 10% decrease in sales Your interpretation should be accompanied with the detailed calculation, 4. In 2021, USEK Medical School uses its own salespeople, who demand a 16% commission. If all other cost-behaviour patterns are unchanged, how much revenue must the students generate in order to earn the same operating income as in 2020

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