Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents The agents are paid a commission of 21 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 $71,200,000 Cost of goods sold Variable $30,616,000 Fixed 8,560,000 39,176,000 Gross margin $32,024,000 Selling and marketing expenses Commissions $14,952,000 Fixed costs 10,660,400 25,612,400 Operating income $6,411,600 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 $9,968,000 Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents The agents are paid a commission of 21 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 $71,200,000 Cost of goods sold Variable $30,616,000 Fixed 8,560,000 39,176,000 Gross margin $32,024,000 Selling and marketing expenses Commissions $14,952,000 Fixed costs 10,660,400 25,612,400 Operating income $6,411,600 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 $9,968,000

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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 21% of sales.

Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% 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		$71,200,000
Cost of goods sold
Variable	$30,616,000
Fixed	8,560,000	39,176,000
Gross margin		$32,024,000
Selling and marketing expenses
Commissions	$14,952,000
Fixed costs	10,660,400	25,612,400
Operating income		$6,411,600

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 $9,968,000.

BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2020
Sales		$71,200,000
Cost of goods sold
Variable	$30,616,000
Fixed	8,560,000	39,176,000
Gross margin		$32,024,000
Selling and marketing expenses
Commissions	$14,952,000
Fixed costs	10,660,400	25,612,400
Operating income		$6,411,600

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 $9,968,000.