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Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of
Bonita 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 December 31, 2022, is as follows. BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Sales $75,000,000 Cost of goods sold Variable $31,500,000 Fixed 8,610,000 40,110,000 Gross profit $34,890,000 Selling and marketing expenses Commissions $13,500,000 Fixed costs 10,260,000 23,760,000 Operating income $11,130,000 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 8% and incur additional fixed costs of $7,500,000. 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 2022. Break-even point $
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