P$19\mathrm{.}6($L$01,4),$ AN Bonita Beauty Corporation manufactures cosmetic 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 $31,2025,$ is as follows.

$\backslash$table$[[\backslash$table$[[$Bonita Beauty Corporation$],[$Income Statement$],[$For the Year Ended December $31,2025]]],[$Sales$,,$$$75,000,000$

Instructions:

A$)$ Under the current policy of using a network of sales agents, calculate the Bonita Beaty Corporations break$-$even point in sales dollars for the year $2025.$

B$)$ Calculate the companys break$-$even point in sales dollars for the year $2025$ it hores its own sales force to replace the network of agents.

C$)$ Calculate the degree of operating leverage at sales of $$75$ million if $(1)$Bonita Beaty uses agents, and $(2)$ Bonita Beaty employs its own sales staff. Describe the advantages and disadvantages of each alternative.

D$)$ calculate the estimated sales volume in sales dollars that will generate an identical net income for the year ending December $31,2025,$ regardless of weather Bonita Beaty Corporation employs its own sales and pays them an $8\%$ commission or continues to use the independent network of agents. $($Hint: Set up an equation with the net income formula, employee independent agents, as once I have the equation and the net income formula, employing the companies own sell stuff as the other side of the equation. Before solving eliminate those aspects that are the same on each side of the equation as they do not vary under the two alternatives.$)$