Martin corporation manufactures pharmaceutical products that are sold through a

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Martin corporation manufactures pharmaceutical products that are sold through a network of external sales agents. The agents are paid a salespeople. who would be paid a commission of 10% of revenues and salaries of The income statement for the ending December 31, 2013 under the two scenarios is shown have 1. Calculate martin's 2013 contribution margin percentage, breakeven revenues. and degree of operating leverage under the two scenarios. 2. Describe the advantages and disadvantages of each of sales alternative. 3. In 2014 martin uses its own salespeople who demand a 15% commission if all other cost behavior patterns are unchanged, how much revenue must the sale people generate in order to earn the same operating 2011? The calculations indicate that at sales of a percentage change in sales and contribution margin will result in times that percentage change in if martin controls to use sales agars and Martin also needs to consider the skill levels and incentive under the two alternatives have more incentive compensation and be more motivated to increase sales on other hand may be more knowledgeable and skilled in selling the company's products. That is, the its elf will be affected by who sells and by the nature of the compensation .

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