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Question 11 of 11 < > View Policies -12 E Current Attempt in Progress Bonita Beauty Corporation manufactures cosmetic products that are sold through
Question 11 of 11 < > View Policies -12 E Current Attempt in Progress Bonita 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, 2020, is as follows. BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2020 Sales $77.400.000 Cost of goods sold Variable $32,508,000 Fixed 8.660.000 41.168.000 $36.232.000 Gross margin Selling and marketing expenses Commissions Fixed costs $13,932,000 10,800,000 24,732,000 $11.500.000 Operating income The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 836 and incur additional fixed costs of $7,740,000. (a) 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 2020. Break-even points Save for Later Attempts: 0 of 5 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (C1)
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