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 20% 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 $76,400,000 Cost of goods sold Variable $32,852,000 Fixed 8,720,000 41,572,000 Gross margin $34,828,000 Selling and marketing expenses Commissions $15,280,000 Fixed costs 10,360,000 25,640,000 Operating income $9,188,000 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 $9,932,000. Collapse question part (a) Correct answer. Your answer is correct. Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporations 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 $Entry field with correct answer 51567568 SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 1 of 2 used Collapse question part (b) Calculate the companys 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 0 decimal places, e.g. 2,510.) Break-even point $