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Calculate the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to 0 decimal places, e.3. 15% and
Calculate the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to 0 decimal places, e.3. 15% and final answers to 0 decimal places, e.3. 5,275.) *Break-even point if unit selling price increases by 30% *Break-even point if there is a change in compensation *Break-even point if there is a purchase of new high-tech factory machinery
Cullumber 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 50,400 units of product: net sales $1,512,000; total costs and expenses $1,688,400; and net loss $176,400. Costs and expenses consisted of the amounts shown below: Management is considering the following independent alternatives for 2023 : 1. Increase the unit selling price by 30% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $168,000 to total salaries of $16,800 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 50:50Step by Step Solution
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