Hi everyone, How r u ?

i have a question which contain 5 questions. i really need your help :S

the Q is

Wellness medical supplies company manufactures disposable thermometers that are sold to hospitals through a network of independent sales agents located in Italy and other Europe countries. These sales agents sell a variety of products to hospitals in addition to the disposable thermometer. The sales agents are currently paid a 15% commission on sales, and this commission rate was used when the company’s management prepared the following budgeted income statement for the upcoming year.

Wellness medical supplies company Budgeted Income Statement
	EUR	EUR
Sales		30,000,000
Less: Cost of goods sold
Variable costs	17,400,000
Fixed costs	2,800,000	20,200,000
Gross Profit		9,800,000
Less: Operating expenses
Sales commissions	4,500,000
Fixed Advertising expense	800,000
Fixed Administrative expense	3,200,000	8,500,000
Net operating income		1,300,000

Since the completion of the above statement, the management has learned that the independent sales agents are demanding an increase in the commission rate to 18% 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, wellness medical supplies management has decided to investigate the possibility of hiring its own sales staff to replace the independent sales agents.

The company’s financial controller estimates that the company will have to hire eight salespeople to cover the current market area, and the total annual payroll (salaries) cost of these employees will be about EUR 700,000. The salespeople will also be paid commissions
of 10% of sales. Travel and entertainment expenses are expected to total about EUR 400,000 for the year. The company will also have to hire a sales manager and support staff whose salaries will come to EUR 200,000 per year. To make up for the promotions that the independent sales agents had been running on behalf of the company, management believes that the company's budget for fixed advertising expenses should be increased by EUR 500,000.

Required:

1. Assuming sales of EUR 30,000,000, construct a budgeted contribution margin income statement for the upcoming year for each of the following alternatives:
   
   
1. The independent sales agents' commission rate remains unchanged at 15%.
2. The independent sales agents' commission rate increases to 18%.
3. The company employs its own sales force.
   
   
2. Calculate the company’s break-even point in sales revenue(EUR) for the upcoming year assuming the following:
   
   
1. The independent sales agents' commission rate remains unchanged at 15%.
2. The independent sales agents' commission rate increases to 18%.
3. The company employs its own sales force.
   
   
3. Refer to your answer to (1)(b) above. If the company employs its own sales force, what volume of sales would be necessary to generate the same net operating income as in 1(b).
   
   
4. Determine the volume of sales (in EUR) at which net operating income would be equal regardless of whether the company sells through agents (at a 18% commission rate) or employs its own sales force.
   
   
5. Write a memo to the president of Wellness medical supplies company in which you make a recommendation as to whether the company should continue to use independent sales agents (at a 18% commission rate) or employ its own sales force. Fully explain the reasons for your recommendation in the memo. (Hint:- Think like a business person!)