Business, 03.07.2020 18:01 Babybeast3544

Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 19% of sales. The income statement for the year ending December 31, 2014, is as follows: BONITA BEAUTY CORPORATION
Income Statement
For the Year Ended December 31, 2014
Sales $79,190,000
Cost of goods sold
Variable $39,595,000
Fixed 8,998,000 48,593,000
Gross margin 30,597,000
Selling and marketing expenses
Commissions 15,046,100
Fixed costs 10,880,000 25,926,100
Operating income $4,670,900
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur additional fixed costs of $7,919,000. Under the current policy of using a network of sales agents, Bonita Beauty Corporation's break-even point in sales dollar for the year 2014 is $64,122,581.

Calculate the company's break-even point in sales dollars for the year 2014 if it hires its own sales force to replace the network of agents.

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