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Please help solve the last part of this problem with worked out solutions. Thanks *Question 1 Bonita Beauty Corporation manufactures cosmetic products that are sold
Please help solve the last part of this problem with worked out solutions. Thanks
*Question 1 Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2017, is as follows. BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2017 Sales $78,300,000 Cost of goods sold Variable Fixed Gross margin 38,367,000 8,790,000 47,157,000 $31,143,000 Selling and marketing expenses $16,443,000 Commissions Fixed costs Operating income 10.520,00026,963,00 $4,180,000 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 or $10,179,000 Question 1 ] Your answer is correct. Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation's break-even point in sales dollars for the year 2017. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to 0 decimal places, e.g. 2,510.) Break-even point 58 365668 Attempts: 1 of 3 used Question 1 Your answer is correct. Calculate the company's break-even point in sales dollars for the year 2017 if it hires its own sales force to replace the network of agents. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to decimal places, e.g. 2,510.) Break-even point 46857907 Attempts: 1 of 3 used Question 1 Your answer is correct. Calculate the degree of operating leverage at sales of $78,300,000 if (1) Bonita Beauty uses sales agents, and (2) Bonita Beauty employs its own sales staff. (Round answers to 2 decimal places, e.g. 1.25.) gree of o (1) Bonita Beauty uses sales agents (2) Bonita Beauty employs its own sales staff Attempts: 1 of 3 used *Question 1 Your answer is incorrect. Try again. Calculate the estimated sales volume in sales dollars that would generate an identical net income for the year ending December 31, 2017, regardless of whether Bonita Beauty Corporation employs its own sales starr and pays them an 8% commission or continues to use the independent network of agents. Estimated sales volume 67,235,870 Attempts: 2 of 3 usedStep by Step Solution
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