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Problem 19-6A (Part Level Submission) Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a
Problem 19-6A (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 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 $70,800,000 Cost of goods sold Variable Fixed Gross margin $33,276,000 8,840,000 42,116,000 $28,684,000 Selling and marketing expenses Commissions Fixed costs Operating income $14,868,000 10,570,000 25,438,000 $3,246,000 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur additional fixed costs of $8,496,000 Your answer is incorrect. Try again. 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 Click if you would like to Show Work for this question: 8,496,000 LINK TO TEXT
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