Cullumber Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a

commission of $22\%$ of sales. The income statement for the year ending December $31,2025,$ is as follows.

CULLUMBER BEAUTY CORPORATION

Income Statement

For the Year Ended December $31,2025$

Sales

$$77,700,000$

Cost of goods sold

Variable

$$33,411,000$

Fixed

Gross profit

$\frac{8,500,000}{\frac{41,911,000}{\text{\$}35,789,000}}$

Selling and marketing expenses

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 $$11,655,000.$

$($a$)$

Your answer is correct.

Under the current policy of using a network of sales agents, calculate the Cullumber Beauty Corporation's break$-$even point in

sales dollars for the year $2025.$

Break$-$even point $

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$($b$)$

Calculate the company's break$-$even point in sales dollars for the year $2025$ if it hires its own sales force to replace the network of

agents.

Need help with b$.$ Thanks!