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Blossom Corp's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed
Blossom Corp'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 500,500 units of product: sales $2,502,500, total costs and expenses $2,615,550, and net loss $113,050. Costs and expenses consisted of the following amounts. Total Variable Fixed Cost of goods sold $2,155,090 $1,491,490 $663,600 Selling expenses 250,250 92,092 158,158 Administrative expenses 210.210 68,068 142,142 $2,615,550 $1,651,650 $963,900 Management is considering the following independent alternatives for 2023. 1. 2 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 $150,150 to total salaries of $60,060 plus a 6% commission on sales. All other total costs, total expenses, and total sales remain unchanged. (a) Compute the break-even point in sales dollars for 2022. Break-even point $
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