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Blossom Corp's sales slumped badly in 2 0 2 5 . For the first time in its history, it operated at a loss. The company's

Blossom Corp's sales slumped badly in 2025. For the first time in its history, it operated at a loss. The company's income statementBlossom Corp.'s sales slumped badly in 2025. For the first time in its history, it operated at a loss. The company's income statement
showed the following results from selling 575,500 units of product: sales $2,877,500, total costs and expenses $2,984,880, and net
loss $107,380. Costs and expenses consisted of the following amounts.
Management is considering the following independent alternatives for 2026.
Increase the unit selling price 20% with no change in total costs, total expenses, and sales volume.
Change the compensation of sales personnel from fixed annual salaries totaling $172,650 to total salaries of $69,060 plus
a 4% commission on sales. All other total costs, total expenses, and total sales remain unchanged.
(a)
Your answer is correct.
Compute the break-even point in sales dollars for 2025.
Break-even point $
eTextbook and Media
(b)
Compute the contribution margin ratio under each of the alternative courses of action. (Round answers to 0 decimal places, eg.
52%.)
Contribution margin ratio for alternative 1
Contribution margin ratio for alternative 2
%
Compute the break-even point in sales dollars under each of the alternative courses of action. (Round intermediate value for
contribution margin ratio to 0 decimal places, e.g.52% and final answer to 0 decimal places, e.g.5,275.)
Break-even point for alternative 1$
Break-even point for alternative 2$
Which course of action do you recommend?
showed the following results from selling 575,500 units of product: sales $2,877,500, total costs and expenses $2,984,880, and net
loss $107,380. Costs and expenses consisted of the following amounts.
Management is considering the following independent alternatives for 2026.
Increase the unit selling price 20% with no change in total costs, total expenses, and sales volume.
Change the compensation of sales personnel from fixed annual salaries totaling $172,650 to total salaries of $69,060 plus
a 4% commission on sales. All other total costs, total expenses, and total sales remain unchanged.
(a)
Compute the break-even point in sales dollars for 2025.
Break-even point $
eTextbook and Media
Attempts: 0 of 3 used
(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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