View Policies Show Attempt History Current Attempt in Progress Bonita Beauty Corporation manufactures cosmetic products...
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Accounting
View Policies Show Attempt History Current 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 $74,800,000 Cost of goods sold Variable $32,164,000 Fixed 8.970,000 41,134,000 Gross margin $33,666,000 Selling and marketing expenses Commissions $13,464,000 Fixed costs 10,791,300 24,255,300 Operating income $9.410,700 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 $8,228,000. Question 3 of 3 8.35/33,4 Your answer is correct Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation's break-even po in sales dollars for the year 2020. Break-even point $ 50670000 eTextbook and Media Attempts: unlimite (b) X Your answer is incorrect. 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 $ 55952200


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