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, 2014, is as follows.

BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2014 Sales $75,850,000 Cost of goods sold Variable Fixed Gross margin $35,649,500 8,957,000 44,606,500 31,243,500 Selling and marketing expenses Commissions Fixed costs Operating income 14,411,500 10,930,00025,341,500 $5,902,000 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 996 and incur additional fixed costs of $7,585,000