1. Compute Pittman Company's break-even point in dollar sales for next year assuming:
a. The agents' commission rate remains unchanged at 15%.
b. The agents' commission rate is increased to 20%.
c. The company employs its own sales force.
Compute Pittman Company's break-even point in dollar sales for next year assuming:
Note: Round CM ratio to 3 decimal places and final answers to the nearest dollar amount.
Pittman Company
Budgeted Income Statement
For the Year Ended December 31
Sales $$23,000,000$$
Variable expenses:
Manufacturing cost $$10,350,000$$
Commissions to agents $$3,450,000$$
Fixed overhead $$3,220,000$$
Fixed administrative expenses $$2,080,000$$
