Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are
Posted: Wed Mar 09, 2022 8:17 am
Bonita Beauty Corporation manufactures cosmetic products that
are sold through a network of sales agents. The agents are paid a
commission of 21% of sales. The income statement for the year
ending December 31, 2020, is as follows.
BONITA BEAUTY CORPORATION
Income Statement
For the Year Ended December 31, 2020
The company is considering hiring its own sales staff to replace
the network of agents. It will pay its salespeople a commission
of 7% and incur additional fixed costs of $9,968,000.
(a)
Under the current policy of using a network of sales agents,
calculate the Bonita Beauty Corporation’s break-even point in sales
dollars for the year 2020.
$Type your answer here
are sold through a network of sales agents. The agents are paid a
commission of 21% of sales. The income statement for the year
ending December 31, 2020, is as follows.
BONITA BEAUTY CORPORATION
Income Statement
For the Year Ended December 31, 2020
The company is considering hiring its own sales staff to replace
the network of agents. It will pay its salespeople a commission
of 7% and incur additional fixed costs of $9,968,000.
(a)
Under the current policy of using a network of sales agents,
calculate the Bonita Beauty Corporation’s break-even point in sales
dollars for the year 2020.
$Type your answer here