Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents....
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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. BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2017 Sales $78,800,000 Cost of goods sold Variable $33,884,000 Fixed 8,650,000 42,534,000 Gross margin $36,266,000 Selling and marketing expenses Commissions $16,548,000 Fixed costs 10,970,000 27,518,000 Operating income $8,748,000 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 $8,668,000. Collapse question part (a) Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporations break-even point in sales dollars for the year 2017. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to 0 decimal places, e.g. 2,510.) Break-even point $
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