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1) What's the breakeven in dollars for 2022 ? Sunland Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated
1) What's the breakeven in dollars for 2022 ?
Sunland 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 69,600 units of product: net sales $2,088,000; total costs and expenses $2,331,600; and net loss $243,600. Costs and expenses consisted of the amounts shown below: Total Variable Fixed Cost of goods sold $1,566,000 $1,078,800 $487,200 Selling expenses 556,800 145,000 411,800 Administrative expenses 208,800 133,400 75,400 $2,331,600 $1,357,200 $974,400 Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 25% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $232,000 to total salaries of $23,200 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. (b) 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 o decimal places, e.g. 15% and final answers to 0 decimal places, e.g. 5,275.) Break-even point if unit selling price increases by 25% s 1855000 2332000 Break-even point if there is a change in compensation $ TO Break-even point if there is a purchase of new high-tech factory machinery $ e Textbook and Media Assistance Used e Textbook 1 e Textbook 2 e Textbook 3 Video Save for Later Attempts: unlimited Submit
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