This is question for Cost and Management Accounting.

Data are in the picture.

DECISION$-$MAKING TECHNIQUES

Permata Sdn Bhd manufactures and sells its single Product X through manufacturer agents. The agents are paid a commission of $20\%$ of the selling price. In the coming financial year, the sales agents' commission is expected to increase. The management of the company feels that the demand from the agent has been too much. The company sells $3,000$ units during the year. The manufacturing capacity of the companys facilities is $6,000$ units per year. The companys statement of profit and loss for the year ended $31$ December $2017$ is as follows:

Permata Sdn BhdStatement of Profit and Loss for the year ended $31$ December $2017$RMRMSales$900,000$Manufacturing cost:Variable$315,000$Fixed overhead$100,000415,000$Gross margin$485,000$Selling and administrative expenses:Commissions$180,000$Fixed marketing expenses$110,000$Fixed administrative expenses$40,000330,000$Operating income$155,000$Less: Fixed financial expenses$1,000$Net income$154,000$

The management of the company has asked the marketing manager to estimate the cost of employing its own sales force. The estimated additional cost of employing its own sales force is as follows:The additional cost consists of the sales personnel salaries which are exclusive of the sales commission. The sales personnel will receive a commission of $15\%$ of the selling price in addition to their salary.

Estimated annual cost of employing a company sales forceRMSales manager$100,000$Sales personnel$50,000$Travel and Entertainment$20,000$Fixed marketing cost$30,000$Total$200,000$Required:

$($a$)$Calculate the companys break$-$even volume in units and sales value for the year ended $21$ December $2017.$

$($b$)$Calculate the break$-$even volume and sales values for the year ended $2018$ if the company employs its own sales force.