Pharoah Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid commission of 22% of sales. The income statement for the year ending December 31, 2025, is as follows.

Pharoah Beauty Corporation Income Statement For the Year Ended December 31, 2025
Sales		$76,900,000
Cost of goods sold
Variable	$30,760,000
Fixed	8,580,000	$39,340,000
Gross profit		$37,560,000
Selling and marketing expenses
Commissions	$16,918,000
Fixed costs	10,070,400	26,988,400
Operating income		$10,571,600

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 $9,228,000.

Under the current policy of using a network of sales agents, calculate the Pharoah Beauty Corporations break-even point in sales for the year 2025.

= 49,080,000

b). Calculate the companys break-even point in sales for the year 2025 if it hires its own sales force to replace the network of agents.