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*PLEASE SHOW CORRECT ANSWERS AND COMPLETE WORK IN SAME FORMAT* Problem 6-6A (Part Level Submission) Bonita Beauty Corporation manufactures cosmetic products that are sold through
*PLEASE SHOW CORRECT ANSWERS AND COMPLETE WORK IN SAME FORMAT*
Problem 6-6A (Part Level Submission) 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, 2017, is as follows. BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2017 Sales $70,000,000 Cost of goods sold Variable Fixed Gross margin $28,000,000 8,500,000 36,500,000 $33,500,000 Selling and marketing expenses $12,600,000 10,000,000 22,600,000 $10,900,000 Fixed costs Operating income The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 7% and incur additional fixed costs of $7,700,000. (a) 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 O decimal places, e.g. 2,510.) Break-even point 44047619Step by Step Solution
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