50.1K

Verified Solution

Link Copied!

Calculate the break-even point in dollars for 2022. Break-even point $ 2,880,000 i eTexthook and Media Assistance Used Solution Attempts: 2 of 2 used lb] Your answer is partially correct. Calculate the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to 0 decimal places, ea. 15% and nal answers to 0 decimal places, as. 5.275.] Break-even point if unit selling price increases by 30% $ 2'016'000 Break-even point if there is a change in compensation $ 2'640'000 Break-even point if there is a purchase of new high-tech factory.r machinery $ 2,632,361 Sandhill Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 72,000 units of product: net sales $2,160,000; total costs and expenses $2,412,000; and net loss $252,000. Costs and expenses consisted of the amounts shown below: Total Variable Fixed Cost of goods sold $1,620,000 $1,116,000 $504,000 Selling expenses 576,000 150,000 426,000 Administrative expenses 216,000 138,000 78,000 $2,412,000 $1,404,000 $1,008,000 Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 30% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $240,000 to total salaries of $24,000 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50

Answer & Explanation Solved by verified expert

See Answer