Reference no: EM133659575
Question: Revenues $35,000,000 Direct materials 8,750,000 Direct labor 10,500,000 Fixed manufacturing costs 4,750,000 COGS 24,000,000 Gross margin 11,000,000 Sales agent commissions 7,000,000 Fixed marketing costs 1,450,000 SG&A 8,450,000 Operating income $2,550,000 Suppose it is now 2024, and Audra has implemented a new internal sales force. However, Audra decided that in order to attract high quality salespeople, it was necessary to implement this system with the sales salaries of $1,750,000 but with an 18% commission (instead of 15%). Assuming all other cost behavior stays the same as presented in the original question, how much must total sales dollars be so that Stella Industries earns the same $2,550,000 operating income as was earned in 2023?
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