BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2017
Sales				$79,300,000
Cost of goods sold
Variable		$31,720,000
Fixed		8,540,000		40,260,000
Gross margin				$39,040,000
Selling and marketing expenses
Commissions		$14,274,000
Fixed costs		10,750,000		25,024,000
Operating income				$14,016,000

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 $6,344,000

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.)

Also, Calculate the degree of operating leverage at sales of $79,300,000 if (1) Bonita Beauty uses sales agents.