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Klyne Corporation manufactures pharmaceutical products that are sold through a network of sales agents The agents are paid a commission of 18% of sales. The
Klyne Corporation manufactures pharmaceutical 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 KLYNE CORPORATIONN Income Statement For the Year Ending December 31, 2017 Sales $ 33,500,000 Cost of goods sold Variable Fixed $ 20,100,000 2,632,000 22,732,000 10,768,000 Gross margin Selling and marketing expenses Commissions Fixed costs 6,030,000 1,945,000 7,975,000 Operating income $ 2,793,000 Klyne is considering hiring its own sales staff to replace the network of agents. Klyne will pay its salespeople a commission of 15% and incur fixed costs of $2,095,000 Required: 1. Calculate Klyne Corporation's break-even point in sales dollars for the year 2017. (Round your answer to 2 decimal places.) Break-even point$20,804,545.45
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