Question 1 of 1 0 / 100 III View Policies Show Attempt History Current Attempt in Progress Blossom 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, 2022, is as follows. BLOSSOM BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Sales $70,000,000 Cost of goods sold Variable $30,100,000 Fixed 8,500,000 38,600,000 $31,400,000 Gross profit Selling and marketing expenses Commissions $12,600,000 Fixed costs 10,001,600 22,601,600 Operating income $8,798,400 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) (a) Your answer is incorrect. Under the current policy of using a network of sales agents, calculate the Blossom Beauty Corporation's break-even point in sales dollars for the year 2022. Break-even point $ (b) Your answer is correct Calculate the company's break-even point in sales dollars for the year 2022 if it hires its own sales force to replace the network of agents. Break-even point $ 52403200 e Textbook and Media Attempts: 1 of 3 used (c1) Calculate the degree of operating leverage at sales of $70,000,000 if (1) Blossom Beauty uses sales agents, and (2) Blossom Beauty employs its own sales staff. (Round answers to 2 decimal places, eg. 1.25.) Degree of operating leverage (1) Blossom Beauty uses sales agents (2) Blossom Beauty employs its own sales staff eTextbook and Media Save for Later Attempts: 0 of 3 used Submit