Calculate the degree of operating leverage at sales of $73,900,000 if (1) Bonita Beauty uses sales agents, and (2) Bonita Beauty employs its own sales staff.

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 year ending December 31, 2017, is as follows. BONITA BEAUTY CORPORATION 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 $13,302,000 10,940,000 24,242,000 $6.015,000 Fixed costs Operating income 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) our answer is correct 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 o decimal places, e.g. 2,510.) Break-even point 60823913 LINK TO TEXT Attempts: 1 of 5 used (d) Calculate the degree of operating leverage at sales of $73,900,000 if (1) Bonita Beauty uses sales agents, and (2) Bonita Beauty employs its own sales staff. (Round answers to 2 decimal places, e.g. 1.25.) (1) Bonita Beauty uses sales agents (2) Bonita Beauty employs its own sales staf