The company is considering hiring its own sales staff to replace the network of agents. It...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $13,000. Under the current policy of using a network of sales agents, calculate Kindle, Inc.'s break-even point in sales dollars for the year 2019. (Round contribution margin answer to 3 decimal places, e.g. 52.143. Round final answer to O decimal places, e.g. 1525.) Break-even point $ eTextbook and Media Calculate the company's break-even point in sales dollars for the year 2019 if it hires its own sales force to replace the network of agents. (Round contribution margin answer to 2 decimal places, e.g. 52.13. Round final answer to 0 decimal places, e.g. 1525.) Break-even point $ 10 Current Attempt in Progress Kindle, Inc. manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 12.5% of sales. The income statement for the year ending December 31, 2019, is as follow. KINDLE, INC. Income Statement Year Ending December 31, 2019 Sales Cost of goods sold Variable Fixed Gross margin Selling and marketing expenses Commissions Fixed costs Operating income $58,500 14,350 $16,250 17,100 $130,000 72,850 57,150 33,350 $23,800 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 $13,000. Under the current policy of using a network of sales agents, calculate Kindle, Inc.'s break-even point in sales dollars for the year 2019. (Round contribution margin answer to 3 decimal places, e.g. 52.143. Round final answer to O decimal places, e.g. 1525.) Break-even point $ eTextbook and Media Calculate the company's break-even point in sales dollars for the year 2019 if it hires its own sales force to replace the network of agents. (Round contribution margin answer to 2 decimal places, e.g. 52.13. Round final answer to 0 decimal places, e.g. 1525.) Break-even point $ 10 Current Attempt in Progress Kindle, Inc. manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 12.5% of sales. The income statement for the year ending December 31, 2019, is as follow. KINDLE, INC. Income Statement Year Ending December 31, 2019 Sales Cost of goods sold Variable Fixed Gross margin Selling and marketing expenses Commissions Fixed costs Operating income $58,500 14,350 $16,250 17,100 $130,000 72,850 57,150 33,350 $23,800
Expert Answer:
Answer rating: 100% (QA)
Income Statement contribution margin formate Sales less variable costs Cost of goods ... View the full answer
Related Book For
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso
Posted Date:
Students also viewed these marketing questions
-
Huber Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 15% of sales. The income statement for the year ending...
-
Olin Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The income statement for the year ending...
-
Long Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The income statement for the year ending...
-
For what number does the principal square root exceed eight times the number by the largest amount?
-
The following 2007 information is available for the Payne Company: Partial additional information: The net income for 2007 totaled $1,600. During 2007 the company sold for $390, equipment that cost...
-
Suppose the government is making a $24,000,000,000 expenditure for travel to Mars. If 73% of this amount is spent again, and so on, what is the total effect on the economy? [8.3]
-
Cuyahoga Parking, which operates a seven-story parking building in downtown Cleveland, has a calendar year end. It serves daily and hourly parkers, as well as monthly parkers who pay a fixed monthly...
-
Nifty Company produces three models of aluminum skateboards. The models have minor differences, but their processing operations and production costs are identical. During June, the following costs...
-
Many cooperate boards are now agreed on the need to take responsibility for any potential or actual social impact caused by their companies activities. This is done through a social responsibility...
-
Answer parts (A) and (B ) in Example 7 for fixed costs of $250 per day and total costs of $3,450 per day at an output of 80 skateboards per day. Data from Example 7 The management of a company that...
-
In 2021, due to a change in marketing forecasts, Barney Corporation reduced the projected life of its patent for producing round dice. The cumulative patent amortization prior to 2021 would have been...
-
The entries in a purchases journal are posted to the what is journal entry
-
You borrowed $15,000 today for 48 months at 12% per year to purchase a car. Calculate the monthly payment at the end of each month.
-
What methodologies can be implemented to mitigate potential ambiguities and ensure precision in technical business writing ?
-
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: 1 st Quarter 2 nd Quarter 3 rd Quarter...
-
If we consider this real interest rate as the main interest rate that the Fed targets, do you think the Fed played a role in causing the recession, or trying to prevent it, or neither? Explain your...
-
What factor is crucial to consider for products with shorter life cycles when it comes to inventory management? Group of answer choices Weight of the products. Size of the storage facility. The averag
-
Flicker, Inc., a closely held corporation, acquired a passive activity this year. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were...
-
Bank employees use a system known as the maker-checker system. An employee will record an entry in the appropriate journal, and then a supervisor will verify and approve the entry. These days, as all...
-
The financial statements of Tootsie Roll are presented in Appendix A at the end of this book. Instructions (a) Using the consolidated income statement and balance sheet, identify items that may...
-
Overton Company has gathered the following information. Units in beginning work in process ....... 20,000 Units started into production ......... 164,000 Units in ending work in process ..........
-
Inventory Costing and LCNRV} Ortman Enterprises sells a chemical used in various manufacturing processes. On January 1, 2018, Ortman had 5,000,000 litres on hand, for which it had paid \(\$ 0.50\)...
-
OBrien Corporations comparative balance sheets as of December 31, 20x8 and 20x7 and its income statement for the year ended December 31, 20x8 are presented on the opposite page. During 20x8, OBrien...
-
Flanders Corporations income statement for the year ended June 30, 20x7 and its comparative balance sheets as of June 30, 20x7 and 20x6 appear on the opposite page. During 20x7, the corporation sold...
Study smarter with the SolutionInn App