Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 22% of sales. The income statement for the year ending December 31, 2020, is as follows. BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2020 Sales Cost of goods sold Variable Fixed Gross margin Selling and marketing expenses $77,700,000 $33,411,000 8,500,000 41,911,000 $35,789,000 Commissions $17,094,000 Fixed costs 10,470,000 27,564,000 Operating income $8,225.000 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 7% and incur additional fixed costs of $11,655,000