YW Corp. is a small but growing manufacturer of telecommunications equipment. The company relies completely on independent sales agents to market its products. These agents are paid a sales commission of $20\%$ of sales. All the following data are in THOUSANDS of dollars.

The company$$s budgeted income statement appears below.

Sales

$$16,000$

Variable expenses:

Cost of goods sold

$$7,200$

Commissions

$3,200$

$10,400$

Contribution margin

$$5,600$

Fixed expenses

$$4,800$

Net income

$$800$

The company is considering the possibility of employing its own salespersons. Eight individuals would be required, at the total fixed salary of $$600$ for these employees, plus commissions of $7\mathrm{.}5\%$ of sales. In addition, a sales manager would be employed at a fixed salary of $$100.$ The total fixed travel and advertising expenses are expected to be $$1,625.$

Required:

a$)$ Compute the break$-$even point in sales dollars based upon the company's budgeted income statement, assuming that the company continues to use independent sales agents.

b$)$ Compute the break$-$even point in sales dollars, assuming that the company employs its own salespersons.

c$)$ Compute the sales dollars that would be required to generate the same net income regardless of whether the company employs its own salespersons or continues to use independent sales agents.

d$)$ Make a recommendation as to whether the company should continue to use independent sales agents or employ its own salespersons. Give reasons for your answer.