Discuss it will pay its salespeople a commission

Assignment Help Accounting Basics
Reference no: EM131754259

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, 2017, is as follows.

BONITA BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2017

Sales $79,300,000
Cost of goods sold
    Variable $31,720,000
    Fixed 8,540,000 40,260,000
    Gross margin $39,040,000
Selling and marketing expenses
    Commissions $14,274,000
    Fixed costs 10,750,000 25,024,000
    Operating income $14,016,000

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 $6,344,000.

Reference no: EM131754259

Questions Cloud

Compute the required sales in dollars : For Flynn Company, variable costs are 65% of sales, and fixed costs are $186,000. Management's net income goal is $68,000
Distribution function for the logistic distribution : Determine the distribution function for the logistic distribution of Problem 2.4.18
Show gas sales to different categories of customers : The data below shows gas sales to different categories of customers in 1992 and in 2002. Use appropriate bar charts to highlight key changes over this period.
Purchasing officer has gone in search for substitute product : The purchasing officer has gone in search for a substitute product.
Discuss it will pay its salespeople a commission : The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission
Write an essay on any of the arguments on abortion : Write a 5 page College MLA research essay on any Of the following arguments on abortion, euthanasia, drug legalization, animal rights, etc.
Who were the target audience : Find Subaru advertisement on YouTube. Who were the target audience? 4. What type of appeal did it use?
Calculate the annual depreciation for year : The price of a sound system purchased by a local town hall was $42,500. It cost $2,100 for delivery
Highlighting the key changes in users that have occurred : A local authority operates a leisure centre for its citizens, offering a swimming pool, squash courts, badminton and other facilities on a single site.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Assuming the effective rate of interst is 12 and using the

assume that you have won the publishers clearing house sweepsteaks. when you are contacted about your winnings you are

  Journal entries made by colson company

Prepare the journal entries made by Colson Company on the followin dates:

  Job no 636 was the only job in process on january 1 of the

cost flows and overhead applicationcleveland metals uses a job cost system and applies factory overhead to production

  Linda ace started her own consulting firm

For this assignment, you are required to present the seven correct journal entries in an Excel spreadsheet.Assignment Template attached below

  How does altitude online web site contribute to the company

How does Altitude Online Web site contribute to the company commerce? How will the new ERP system impact Altitude Online Web presence?

  Dye company at a sales level of 5000 units sales were

dye company at a sales level of 5000 units sales were 75000 variable expenses total 40000 and fixed expenses were

  What is the depreciation expense

The average useful life for commercial buildings is 25 years. What is the depreciation expense for the 90%/10% allocation?

  What is their basis in the machine on the date of sale

Abbey Inc. purchased a $60,000 machine in March 2013. What is their basis in the machine on the date of sale

  Prepare the journal entry of sunshine health

Prepare the journal entry, if any, Required on January 1. Prepare the journal entries, if any, Required on January 2 through 10. Prepare the journal entries, if any, Required on January 12.

  He wants to know how he can be involved in decision-making

youre a tax preparer and one of you clients comes to you frustrated about why there are so many tax law changes. he

  Non-recognition treatment under irc

Research and analyze whether transactions are eligible for non-recognition treatment under IRC §351. Using your tax research memo template developed in Module One, prepare a tax research memorandum to problem C:2-62 in your textbook.

  Recognition of loss-percentage-of-completion

In 2014 Norcraft Sisters Construction agreed to construct a residence hall at University of the North at a price of $8,500,000. The information relating to the costs and billings for this contract is shown below.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd