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Blossom 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, 2022, is as follows. BLOSSOM BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Sales: $70,800,000 Cost of goods sold Variable: $29,028,000 Fixed 8,840,000 37,868,000 Gross profit $32,932,000 Selling and marketing expenses Commissions $14,868,000 Fixed costs 10,570,400 25,438,400 Operating income $7,493,600 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 $8.496,000. Blossom 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, 2022, is as follows. BLOSSOM BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Sales: $70,800,000 Cost of goods sold Variable: $29,028,000 Fixed 8,840,000 37,868,000 Gross profit $32,932,000 Selling and marketing expenses Commissions $14,868,000 Fixed costs 10,570,400 25,438,400 Operating income $7,493,600 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 $8.496,000.

Blossom 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, 2022, is as follows. BLOSSOM BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Sales: $70,800,000 Cost of goods sold Variable: $29,028,000 Fixed 8,840,000 37,868,000 Gross profit $32,932,000 Selling and marketing expenses Commissions $14,868,000 Fixed costs 10,570,400 25,438,400 Operating income $7,493,600 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 $8.496,000. Blossom 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, 2022, is as follows. BLOSSOM BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Sales: $70,800,000 Cost of goods sold Variable: $29,028,000 Fixed 8,840,000 37,868,000 Gross profit $32,932,000 Selling and marketing expenses Commissions $14,868,000 Fixed costs 10,570,400 25,438,400 Operating income $7,493,600 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 $8.496,000.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 18E
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Blossom 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, 2022, is as follows. BLOSSOM BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Sales: $70,800,000 Cost of goods sold Variable: $29,028,000 Fixed 8,840,000 37,868,000 Gross profit $32,932,000 Selling and marketing expenses Commissions $14,868,000 Fixed costs 10,570,400 25,438,400 Operating income $7,493,600 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 $8.496,000.
Transcribed Image Text:Blossom 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, 2022, is as follows. BLOSSOM BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Sales: $70,800,000 Cost of goods sold Variable: $29,028,000 Fixed 8,840,000 37,868,000 Gross profit $32,932,000 Selling and marketing expenses Commissions $14,868,000 Fixed costs 10,570,400 25,438,400 Operating income $7,493,600 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 $8.496,000.
Blossom 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, 2022, is as follows. BLOSSOM BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Sales: $70,800,000 Cost of goods sold Variable: $29,028,000 Fixed 8,840,000 37,868,000 Gross profit $32,932,000 Selling and marketing expenses Commissions $14,868,000 Fixed costs 10,570,400 25,438,400 Operating income $7,493,600 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 $8.496,000.
Transcribed Image Text:Blossom 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, 2022, is as follows. BLOSSOM BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2022 Sales: $70,800,000 Cost of goods sold Variable: $29,028,000 Fixed 8,840,000 37,868,000 Gross profit $32,932,000 Selling and marketing expenses Commissions $14,868,000 Fixed costs 10,570,400 25,438,400 Operating income $7,493,600 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 $8.496,000.
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