(Answered) Question - bonita beauty corporation manufacture cosmetic

Accounting

Question - 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 Income statement For the Year Ended Number 31, 2017
Sales		$77,300,000
Cost of goods sold
Variable	$37,877,000
Fixed	8,760,000	46,637,000
Gross margin		$30,663,000
Selling and marketing expenses
Comissions	$15,460,000
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 ?xes costs of $7,730,000.

(a) Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation's weak-even point in sales dollars for the year 2017.

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