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(b) Calculate the company’s break even point in sales dollars for the year 2017 if it hires its own sales force to replace the network of agents.
Bonita Beauty corporation manufacture: cosmetic products that aresolo through a network of sales agena The agents are paid a commission of 20% ofsales, The income statement For the year ending December 31, 2017, is as Follows. BONITA IEIUTI’ CORPORATION Inoomo statementFor the Year Ended Number 31, 201.? Sales $77,300,000Cost of goods sold Va riable $37,877,000 Fixed 3,750,000 46,637,000 Gross margin $30,663,000Selling and marlmting expenses Commissions $15,400,000 Fixed costs 10,000,000 25,460,000 Operating income $5,203,000 The company is considenng hiring its own sales staff to replace the network Magenta Itwill pay its salapeople a commission of 10% and incur additional fixes costs of $7,730,000. 7 (a) Under the current policy of using a network of sales agents, calculate the Bonita BeautyI Corporation‘s weak-even point in sales dollars for the year 2017. (Roundinionnediate caiculafims to). decimal places 9.9, 10.25 and final answer; to 0decimal prams, 1.9. 2,510.) Breakvevan point $
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