Sunland Corp's sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's inco

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Sunland Corp S Sales Slumped Badly In 2020 For The First Time In Its History It Operated At A Loss The Company S Inco 1 (26.68 KiB) Viewed 11 times

Sunland Corp S Sales Slumped Badly In 2020 For The First Time In Its History It Operated At A Loss The Company S Inco 2 (21.66 KiB) Viewed 11 times

Sunland Corp S Sales Slumped Badly In 2020 For The First Time In Its History It Operated At A Loss The Company S Inco 3 (20.02 KiB) Viewed 11 times

Sunland Corp's sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 575,500 units of product: sales $2,877,500, total costs and expenses $2,973,625, and net loss $96.125. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses 2. 1. Total $2,444,165 287,750 241,710 $2,973,625 Variable $1.973,965 105,892 78,268 Fixed $470,200 181,858 163,442 Management is considering the following independent alternatives for 2021. Increase unit selling price 25% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $172,650 to total salaries of $69,060 plus a 5% commission on sales. $2,158,125 $815,500
(a) Compute the break-even point in dollars for 2020. Break-even point $
(b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places, e.g. 1,225.) Contribution margin for alternative 1 Contribution margin for alternative 2 Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places, e.g. 5.2 calculations to 0 decimal places, e.g. 20% and also final answer to 0 decimal places, e.g. 1,225.) Break-even point for alternative 1 Break-even point for alternative 2