(b)

Calculate the companys break-even point in sales dollars for the year 2017 if it hires its own sales force to replace the network of agents. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to 0 decimal places, e.g. 2,510.)

Break-even point

$

Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 19% of sales. The income statement for the year ending December 31, 2017, is as follows BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2017 Sales $76,200,000 Cost of goods sold Variable Fixed Gross margin $36,576,000 8,590,000 45,166,000 $31,034,000 Selling and marketing expenses Commissions Fixed costs Operating income $14,478,000 10,110,000 24,588,000 $6,446,000 The company is considering hiring its own sales staff t replace the network of agents. It will pay its salespeople a commission of 10% and incur additional fixed costs of $6,858,000. (a) Your answer is correct. Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation's break-even point in sales dollars for the year 2017. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to 0 decimal places, e.g. 2,510.) Break-even point 56666666.70