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CALCULATOR PRINTER VERSION roblem 5-4A (Video) unland Corp.'s sales slumped badly in 2020. For the first time in its history, it operated at a loss.
CALCULATOR PRINTER VERSION roblem 5-4A (Video) unland Corp.'s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's Income statement showed the following results from lling 575,500 units of product: sales $2,877,500, total costs and expenses $2,973,625, and net loss $96,125. Costs and expenses consisted ol the amounts shown below. Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses 2,444,165 $1,973,965 $470,200 287,750 105,892 181,858 78,268163,442 2,973,625 $2,158,125 $815,500 , 241,710 78,768 Management is considering the following independent alternatives for 2021 1. Increase unit selling price 25% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salarles totaling $172,650 to total salaries of 69,060 plus a 5% commissiou o sales Compute the break even point in dollars for 2020 Break even point 1047 AM Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 Contribution margin for alternative 2 Compute the break-even point in dollars using the contribution margin ratio under each of the alternative courses of action. Break-even point for alternative 1 Break-even point for alternative 2 Which course of action do you recommend? Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT VIDEO: SIMILAR PROBLEM to search
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