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Bramble Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents

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Bramble Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2020, is as follows. 
BRAMBLE BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2020 
Sales Cost of goods sold $78.800.000 Variable $31,520,000 Fixed 8,650,000 40,170,000 Gross margin $38,630,000 Selling and marketing expenses Commissions $16,548,000 Fixed costs 10,970,900 27,518,900 Operating income $11,111,100 
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 10% and incur additional fixed costs of $8,668,000. 
 

(c1) 
Calculate the degree of operating leverage at sales of $78,800,000 if (1) Bramble Beauty uses sales agents, and (2) Bramble Beauty employs its own sales staff. (Round answers to 2 decimal places, e.g. 1.25.) 
Degree of operating leverage 
(1) Bramble Beauty uses sales agents 
(2) Bramble Beauty employs its own sales staff