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Blossom Inc. had a bad year in 2024. For the first time in its history, it operated at a loss. The company's income statement
Blossom Inc. had a bad year in 2024. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 81,600 units of product: net sales $2,040,000; total costs and expenses $2,279,700; and net loss $239,700. Costs and expenses consisted of the following. Que Accou Total Variable Fixed Cost of goods sold $1,599,360 $1,071,000 $528,360 Selling expenses 527,340 93,840 433,500 Administrative expenses 153,000 59,160 93,840 $2,279,700 $1,224,000 $1,055,700 Management is considering the following independent alternatives for 2025. 1 Increase unit selling price 25% with no change in costs and expenses. 2 3. Change the compensation of salespersons from fixed annual salaries totaling $204,000 to total salaries of $40,800 plus a 5% commission on net sales Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50.50. Ques Accoun Questa Accountin Viewing 4 Accounting
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