QUESTIONS:

Questions:

a.)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.

Break-even point

$

b.)Calculate the degree of operating leverage at sales of $78,800,000 if (1) Bonita Beauty uses sales agents, and (2) Bonita Beauty employs its own sales staff. (Round answers to 2 decimal places, e.g. 1.25.)

c.)Calculate the estimated sales volume in sales dollars that would generate an identical net income for the year ending December 31, 2017, regardless of whether Bonita Beauty Corporation employs its own sales staff and pays them an 10% commission or continues to use the independent network of agents.

Problem 19-6A (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 21% of sales. The income statement for the year ending December 31, 2017, is as follows. December 31, ents are paid a nufactures cos 571,200,000 BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold Variable $29,192,000 Fixed 8,560,000 Gross margin Selling and marketing expenses Commissions $14,952,000 Fixed costs 10,660,000 Operating income 37,752,000 $33,448,000 25,612,000 $7,836,000 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 59,968,000. (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (1) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the Problem 19-6A (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 21% of sales. The income statement for the year ending December 31, 2017, is as follows. December 31, ents are paid a nufactures cos 571,200,000 BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold Variable $29,192,000 Fixed 8,560,000 Gross margin Selling and marketing expenses Commissions $14,952,000 Fixed costs 10,660,000 Operating income 37,752,000 $33,448,000 25,612,000 $7,836,000 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 59,968,000. (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (1) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the