Sunland 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. Sales SUNLAND BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Cost of goods sold Variable Fixed Gross profit Selling and marketing expenses Commissions Fixed costs Operating income $31,777,000 8,910,000 $13,302,000 10,937,100 $73,900,000 40,687,000 $33,213,000 24,239,100 $8,973,900 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 $8,129,000.

Sunland 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. The compary is considering hiring its own sales staff to replace the network of agents it wil pay its salespeople a cornmission of 7% and incur additional fixed costs of $8,129.000