Answer Happy

crane Inc. had a bad year in 2019. For the first time inits history, it operated at a loss. The company’s income statementshowed the following results from selling 75,000 units ofproduct: net sales $1,500,000; total costs and expenses $1,900,000;and net loss $400,000. Costs and expenses consisted of thefollowing.
Total
Variable
Fixed
Cost of goods sold
Selling expenses
Administrative expenses
Management is considering the following independent alternativesfor 2020.
1.
2.
3.
(a) Compute the break-even point indollars for 2019. (Round contribution margin ratioto 4 decimal places e.g. 0.2512 and final answer to 0 decimalplaces, e.g. 2,510.)
$enter the break-even point in dollars for 2019 rounded to 0decimal places
(b) Compute the break-even point in dollarsunder each of the alternative courses of action for2020. (Round contribution margin ratio to 3decimal places e.g. 0.251 and final answers to 0 decimal places,e.g. 2,510.)
Break-even point
Increase selling price
$enter a dollar amount
Change compensation
$enter a dollar amount
Purchase machinery
$enter a dollar amount
Which course of action do you recommend? select therecommended alternative
Alternative 1Alternative 2Alternative3