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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
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 statement for the year ending December 31, 2020, is as follows. come BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2020 Sales $77,300,000 Cost of goods sold $30,920,000 Variable Fixed Gross margin 76,00039,680,000 $37,620,000 Selling and marketing expenses Commissions Fixed costs Operating income $15,460,000 10,000,000 25,460,000 $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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