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Bramble Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed

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Bramble Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 80,000 units of product: net sales $1,600,000; total costs and expenses $1,815,200, and net loss $215,200. Costs and expenses consisted of the following Cost of goods sold Selling expenses Administrative expenses Total $1,156,000 512,200 147,000 $1.815,200 Variable $650,000 93,000 57,000 $800,000 Fixed $506,000 419.200 90,000 $1,015,200 Management is considering the following independent alternatives for 2020. 1. 2. Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $199,000 to total salaries of $45,010 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 3 (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer to decimal places, eg. 2,510.) Break-even point $ (b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to 3 decimal places eg. 0.251 and final answers to decimal places, eg. 2,510.) Break-even point 1. $ Increase selling price Change compensation 2. $ 3. Purchase machinery Alternative 1 Alternative 2 Alternative 3 Which course of action do you recommend

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