Question: Please HELP! Need help completing part b. Question 7 Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The
Please HELP! Need help completing part b.


Question 7 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, 2014, is as follows BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2014 Sales $78,990,000 Cost of goods sold Variable Fixed Gross margin $36,335,400 8,940,000 45,275,400 33,714,600 Selling and marketing expenses Commissions Fixed costs Operating income 16,587,900 10,900,000 27,487,900 $6,226,700 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 11% and incur additional fixed costs of $7,899,000 (a) Your answer is correct. 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 2014. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to o decimal places, e.g. 2,510.) Break-even point 60121212
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