I can\'t get b1 can someone help? Problem 19-6A (Part Level Submission) BONITA B

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I can't get b1 can someone help?   

Problem 19-6A (Part Level Submission)

BONITA BEAUTY CORPORATION
Income Statement
For the Year Ended December 31, 2017

(a)

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(b)

Problem 19-6A (Part Level Submission)

Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The income statement for the year ending December 31, 2017, is as follows.

BONITA BEAUTY CORPORATION
Income Statement
For the Year Ended December 31, 2017

Sales $79,300,000 Cost of goods sold     Variable $31,720,000     Fixed 8,540,000 40,260,000     Gross margin $39,040,000 Selling and marketing expenses     Commissions $14,274,000     Fixed costs 10,750,000 25,024,000     Operating income $14,016,000
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 $6,344,000.

(a)

Your answer is correct. 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 2017. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to 0 decimal places, e.g. 2,510.)
Break-even point $

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Attempts: 1 of 5 used

(b)

Your answer is incorrect. Try again. 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. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to 0 decimal places, e.g. 2,510.)
Break-even point $

Explanation / Answer

b-1 Variable costs=31720000+(79300000*10%)= $39650000 Fixed costs=8540000+10750000+6344000= $25634000 CM ratio=(79300000-39650000)/79300000= 50% Break-even point = 25634000/50%= $51268000

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