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Problem 6-6A a-b, c1,d (Video) (Part Level Submission) Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents

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Problem 6-6A a-b, c1,d (Video) (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 20% of sales. The income statement for the year ending December 31, 2020, is as follows. BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2020 Sales 77,300,000 Cost of goods sold Variable Fixed Gross margin $30,920,000 8,760,000 39,680,000 $37,620,000 Selling and marketing expenses Commissions Fixed costs Operating income $15,460,000 10,000,00025,460,000 $12,160,000 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 $7,730,000

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