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Problem 22-04A (Video) Oriole 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 540,500 units of product: sales $2,702,500, total costs and expenses $2,803,440, and net loss $100,940. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $2,306,180 $1,772,840 $533,340 99,452 170,798 73,508 153,502 $2,803,440 $1,945,800 $857,640 270,250 227,010 Management is considering the following independent alternatives for 2021. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $162,150 to total salaries of $64,860 plus a 4% commission on sales. Compute the break-even point in dollars for 2020 Break-even point s LINK TO TEXT Compute the contribution margin under each of the alternative courses of action 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. Break-even point for alternative 1 Break-even point for alternative 2 Which course of action do you recommend? LINK TO TEXT VIDEO: SIMILAR PROBLEM Problem 22-02A a-b,d (Video) Sheridan Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,400 per month. One of the barbers serves as the manager and receives an extra $560 per month. In addition to the base rate, each barber also receives a commission of $6.40 per haircut. Other costs are as follows Advertising Rent Barber supplies Utilities Magazines $260 per month $1,060 per month $0.50 per haircut $160 per month plus $0.10 per haircut $25 per month Sheridan currently charges $14 per haircut. Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total variable cost per haircut Total fixed Compute the break-even point in units and dollars. Break-even point Break even sales haircuts LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Determine net income, assuming 1,600 haircuts are given in a month. Net income (Loss) LINK TO TEXT LINK TO TEXT LINK TO TEXTLINK TO TEXT

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