Carla Vista 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, 2022, is as follows.

CARLA VISTA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022
Sales				$78,800,000
Cost of goods sold
Variable		$31,520,000
Fixed		8,650,000		40,170,000
Gross profit				$38,630,000
Selling and marketing expenses
Commissions		$16,548,000
Fixed costs		10,970,900		27,518,900
Operating income				$11,111,100

The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 10% and incur additional fixed costs of $8,668,000.

(a)

Under the current policy of using a network of sales agents, calculate the Carla Vista Beauty Corporations break-even point in sales dollars for the year 2022.

Break-even point

$enter the breakeven point in dollars

(b)

Calculate the companys break-even point in sales dollars for the year 2022 if it hires its own sales force to replace the network of agents.

Break-even point

$enter the breakeven point in dollars

(c1)

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(d)

The parts of this question must be completed in order. This part will be available when you complete the part above.