Answer Happy

Question 4 of 4 View Policies Current Attempt in Progress Cost of goods sold Selling expenses < Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 78,000 units of product: net sales $1,560,000; total costs and expenses $1,795,200, and net loss $235,200. Costs and expenses consisted of the following. Administrative expenses 1 23 Total Variable $1,115,600 $628,000 526,600 94,000 153,000 54.000 $1,795.200 $780.000 Fixed $487,600 432.600 95,000 -/5 : $1.05.200 Management is considering the following independent alternatives for 2020, Increase unit selling price 25% with no change in costs and expenses Change the compensation of salespersons from fixed annual salaries totaling $202.000 to total salaries of $40,000 phusa 58 commission on net sales Purchase new high-tech factory machinery that will change the proportion between variable and fed cost of goods sold to 50:50. SUMMAR
Question 4 of 4 (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer to 0 decimal places, eg. 2,510) Break-even point $ (b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to 3 decimal places eg 0.251 and final answers to 0 decimal places, eg. 2.510) 1. 2. 3 Increase selling price Change compensation Purchase machinery 5 Safor Later 5 -/5 = 1 Break-even point Which course of action do you recommend? Attempts: 0 of 7 used Submit Answer ² MING A