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Oriole Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 20% of sales.
Oriole Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 20% of sales. The income statement for the year ending December 31,2025 , is as follows. The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 8% and incur additional fixed costs of $8,472,000. (a) Under the current policy of using a network of sales agents, calculate the Oriole Beauty Corporation's break-even point in sales dollars for the year 2025. Break-even point \$
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