The company is considering hiring its own sales staff to replace the network of agents. It...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $13,000. Under the current policy of using a network of sales agents, calculate Kindle, Inc.'s break-even point in sales dollars for the year 2019. (Round contribution margin answer to 3 decimal places, e.g. 52.143. Round final answer to O decimal places, e.g. 1525.) Break-even point $ eTextbook and Media Calculate the company's break-even point in sales dollars for the year 2019 if it hires its own sales force to replace the network of agents. (Round contribution margin answer to 2 decimal places, e.g. 52.13. Round final answer to 0 decimal places, e.g. 1525.) Break-even point $ 10 Current Attempt in Progress Kindle, Inc. manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 12.5% of sales. The income statement for the year ending December 31, 2019, is as follow. KINDLE, INC. Income Statement Year Ending December 31, 2019 Sales Cost of goods sold Variable Fixed Gross margin Selling and marketing expenses Commissions Fixed costs Operating income $58,500 14,350 $16,250 17,100 $130,000 72,850 57,150 33,350 $23,800 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 $13,000. Under the current policy of using a network of sales agents, calculate Kindle, Inc.'s break-even point in sales dollars for the year 2019. (Round contribution margin answer to 3 decimal places, e.g. 52.143. Round final answer to O decimal places, e.g. 1525.) Break-even point $ eTextbook and Media Calculate the company's break-even point in sales dollars for the year 2019 if it hires its own sales force to replace the network of agents. (Round contribution margin answer to 2 decimal places, e.g. 52.13. Round final answer to 0 decimal places, e.g. 1525.) Break-even point $ 10 Current Attempt in Progress Kindle, Inc. manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 12.5% of sales. The income statement for the year ending December 31, 2019, is as follow. KINDLE, INC. Income Statement Year Ending December 31, 2019 Sales Cost of goods sold Variable Fixed Gross margin Selling and marketing expenses Commissions Fixed costs Operating income $58,500 14,350 $16,250 17,100 $130,000 72,850 57,150 33,350 $23,800
Expert Answer:
Answer rating: 100% (QA)
Income Statement contribution margin formate Sales less variable costs Cost of goods ... View the full answer
Related Book For
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso
Posted Date:
Students also viewed these marketing questions
-
Huber Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 15% of sales. The income statement for the year ending...
-
Olin 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...
-
Long 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...
-
For what number does the principal square root exceed eight times the number by the largest amount?
-
Michelles business produces ceramic cups using labor, clay, and a kiln. She produces cups using a fixed proportion of labor and clay, but regardless of how many cups she produces, she uses only one...
-
Write a program FunctionGrowth that prints a table of the values log n, n, n loge n, n 2 , n 3 , and 2 n for n = 16, 32, 64, ... , 2,048. Use tabs (\t characters) to align columns.
-
Describe advances in medicine that have contributed to improving the quality of patient care.
-
Match each term to the correct definition. Terms: a. Flexible budget b. Flexible budget variance c. Sales volume variance d. Static budget e. Variance Definitions: 1. A summarized budget for several...
-
Required information Exercise 13-10 (Algo) Small stock dividend LO P2 (The following information applies to the questions displayed below.] The stockholders' equity section of TVX Company on February...
-
A quality-control inspector for a food-processing firm needed assurance that the cans of fruit in a production run were filled to capacity. He opened every tenth box in the warehouse and removed the...
-
Consider the beam shown in the given figure. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. 1800 lbf A 300 lbf/in 1 in 47 3 in 1 in 10 in...
-
Describe the impact that macro-level changes such as political, economic, social- demographic, and technological changes, globalization, and COVID have had on health care organizations. Provide...
-
evaluating the effectiveness of the training provided and the performance management process. In your report, you should outline: a) Learning outcomes: Whether the training provided achieved the...
-
Discuss The revenue cycle and the role of coding. In this day in age, hospitals and contract coding companies are utilizing off-shore coding. What are the advantages and disadvantages of off-shore...
-
What is the Sydney Water Section 73 Compliance Certificate, and why is needed? Sydney Water categorizes construction works for developments as either major works or minor works - What does this mean...
-
describe what kind of managers (characteristics and personality traits): James Sinclair, Palmer-Korn, Janet Johnson, Sarah Biel and Tammy Macdonald .
-
In today's globalized and multicultural workplace, managers often encounter diverse populations within their teams and organizations. Discuss the challenges and provide solutions that managers face...
-
Flicker, Inc., a closely held corporation, acquired a passive activity this year. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were...
-
Bank employees use a system known as the maker-checker system. An employee will record an entry in the appropriate journal, and then a supervisor will verify and approve the entry. These days, as all...
-
The financial statements of Tootsie Roll are presented in Appendix A at the end of this book. Instructions (a) Using the consolidated income statement and balance sheet, identify items that may...
-
Overton Company has gathered the following information. Units in beginning work in process ....... 20,000 Units started into production ......... 164,000 Units in ending work in process ..........
-
Figure 5 shows a scatterplot for the variables number of farms and mean farm size in the United States. Each dot represents data from a single year between 1950 and 2000; on this diagram, the earlier...
-
Youve conducted a study to determine how the number of calories a person consumes in a day correlates with time spent in vigorous bicycling. Your sample consisted of ten women cyclists, all of...
-
The scatterplots in Figure 6 show two weeks of data comparing the actual high temperature for the day with the same-day forecast (part a) and the three-day forecast (part b). Estimate the correlation...
Study smarter with the SolutionInn App