w Attempt History arrent 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 $70,000,000 Cost of goods sold Variable $30,100,000 Fixed 8,500,000 38,600,000 Gross margin $31.400,000 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. Question 3 of 3 16.7/33.4 Qu 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. Qui Acce Break-even point $ 47440000 Que Acco e Textbook and Media Vies Que Acco Attempts: unlimited (b) Your answer is correct. Calculate the company's break-even point in sales dollars for the year 2020 if it hires its own sales force to replace the network of agents. Break-even point $ 52403200 e Textbook and Media Attempts: unlimite c1) Calculate the degree of operating leverage at sales of $70,000,000 if (1) Bonita Beauty uses sales agents, and (2) Bonita Beauty employs its own sales staff. (Round answers to 2 decimal places, eg. 1.25.) Degree of operating leverage Bonita Beauty uses sales agents (2) Bonita Beauty employs its own sales staff e Textbook and Media Save for Later Attempts: unlimited Submit