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e pemesan Company is a small but growing manufacturer of teleoommunications equipment. The company has no sales force of its own: rather, relies completely products. These agents a sales commission on independent sales agents to market its of 15% for all items sold. Barbara Cheney, Pittman's controller, has just prepared next year. The statement follows: the company's income statement for budgeted Pittman company Dol Budgeted Income Statement For the Year Ended December 31 20,500 20, Two Variable expenses Manufacturing 7,950 Sales commission 3.075 Total contribution margin 9,475 Fixed expenses Manufacturing overhead 2,940 Marketing expenses 260 Net operating income S 6,275 Pittman is considering employing its own sales force. Salespersons will be paid asmall fixed salary and a commission, which is determined by the industry practice. Such a change will increase the fixed marketing expenses. The new numbers are: Commission rate New (total fixed marketing expense S 1,060 Determine the sales at which net income would be equal regardless of whether Pittman Company sells throug agents (at a 15% commission rate) or employs its own sales force. Choose the closest 7,810 20,500 s 21.200 31,238 16,000