Sandhill Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The...
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Sandhill 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, 2025, is as follows. SANDHILL BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2025 Sales $74,800,000 Cost of goods sold Variable $29,920,000 Fixed 8,590,000 38,510,000 Gross profit $36,290,000 Selling and marketing expenses Commissions Fixed costs Operating income $15,708,000 10,890,500 26,598,500 $9.691.500 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 $8,228,000. (a) Under the current policy of using a network of sales agents, calculate the Sandhill Beauty Corporation's break-even point in sales dollars for the year 2025. Break-even point $ Sandhill 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, 2025, is as follows. SANDHILL BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2025 Sales $74,800,000 Cost of goods sold Variable $29,920,000 Fixed 8,590,000 38,510,000 Gross profit $36,290,000 Selling and marketing expenses Commissions Fixed costs Operating income $15,708,000 10,890,500 26,598,500 $9.691.500 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 $8,228,000. (a) Under the current policy of using a network of sales agents, calculate the Sandhill Beauty Corporation's break-even point in sales dollars for the year 2025. Break-even point $
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