Calculate the bonita beauty corporation weak-even point

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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.

Reference no: EM131726371

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