Kindle, Inc. manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commi

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Kindle Inc Manufactures Cosmetic Products That Are Sold Through A Network Of Sales Agents The Agents Are Paid A Commi 1 (27.22 KiB) Viewed 12 times

Kindle Inc Manufactures Cosmetic Products That Are Sold Through A Network Of Sales Agents The Agents Are Paid A Commi 2 (33.62 KiB) Viewed 12 times

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. 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.

Your answer is correct. 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 (b) Using multiple attempts will impact your score. 10% score reduction after attempt 1 74000 Break-even point Attempts: 1 of 2 used 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, eg. 1525.)