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II Avio Company is a small but growing manufacturer of grooming equipment. Their manufacturing overhead costs are all fixed. The cost structure of all expenses are inflexible, except sales force cost The company has no sales force of its own: at the moment, it relies completely on independent sales agents to market its products. Avio is considering employing its own sales force. In their plan, salespersons will be paid a small fixed salary and acommission lower than the current Compared with year 2015. such a plan will increase the fixed marketing expenses but reduce commissions as follows Commission rate 17% of Sales 13% s 2,060 s 1.260 Total fixed marketing expense The statement of year 2015 follows: Heron Company Income Statement 12/31/2015 Sales 20.250 6.075 Prime cost 2.940 Fived manufa overhead 6,532.50 Net Determine the sales at which net income would be equal regardless of whether Avio Company sells through agents (at the 2015 commission rate) or employs its own sales force (as the plan suggestes) Choose the closest answer A 93.500 20.232 20.250 72,250 c s 51,500 D 20.250 8,707.5 20,000