Chat with us, powered by LiveChat 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. | Writedemy

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 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 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 $77,400,000
Cost of goods sold
    Variable $37,152,000
    Fixed 8,660,000 45,812,000
    Gross margin $31,588,000
Selling and marketing expenses
    Commissions $13,932,000
    Fixed costs 10,800,000 24,732,000
    Operating income $6,856,000

The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 8% and incur additional fixed costs of $7,740,000.

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