Company’s break even point

by | Nov 17, 2021 | Homework Help

Explain the steps on how to figure this out.(b) Calculate the company’s break even point in sales dollars for the year 2017 if it hires its own sales force to replace the network of agents.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 Inoomo statementFor the Year Ended Number 31, 201.? Sales $77,300,000Cost of goods sold Va riable $37,877,000 Fixed 3,750,000 46,637,000 Gross margin $30,663,000Selling and marlmting expenses Commissions $15,400,000 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. 7 (a) Under the current policy of using a network of sales agents, calculate the Bonita BeautyI Corporation‘s weak-even point in sales dollars for the year 2017. (Roundinionnediate caicula?ms to). decimal places 9.9, 10.25 and final answer; to 0decimal prams, 1.9. 2,510.) Breakvevan point $

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