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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 of18% of sales. The

Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of18% 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 $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 of10% and incur additional fixed costs of $6,344,000.
(a) Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporations 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 poin

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