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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 sales.
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, 2017, is as follows.
Problem 19-6A (Part Level Submission) 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 ye ending December 31, 2017, is as follows BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2017 Sales $73,900,000 Cost of goods sold Variable Fixed Gross margin $34,733,000 8,910,000 43,643,000 $30,257,000 Selling and marketing expenses Commissions Fixed costs Operating income $13,302,000 10,940,000 24,242,000 $6,015,000 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 $8,129,000 (b) Calculate the company's 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.) Break-even point s Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER avascript:void(0)Step by Step Solution
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