Cullumber 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, 2022, is as follows.

CULLUMBER BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022
Sales				$74,800,000
Cost of goods sold
Variable		$29,920,000
Fixed		8,830,000		38,750,000
Gross profit				$36,050,000
Selling and marketing expenses
Commissions		$14,212,000
Fixed costs		10,333,400		24,545,400
Operating income				$11,504,600

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 $6,732,000.

(a)

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

Break-even point

$enter the breakeven point in dollars

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(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

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(c1)

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(d)

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Please answer all sections the past few times the answer is a but not C1, OR D