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can an expert please solve all of this please?! Bonita Inc. had a bad year in 2019. For the first time in its history, it
can an expert please solve all of this please?!
Bonita 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 76,000 units of poduct: net sales $1,520,000; total costs and expenses $1,780,000; and net loss $260,000. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses 1. 2. Total 3. $1,115,600 515,400 149,000 Variable $611,000 93,000 56,000 $1,780,000 $760,000 Fixed $504,600 422,400 Management is considering the following independent alternatives for 2020. 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 $35,980 plus a 5% commission on net sales. 93,000 $1,020,000 Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to 0 decimal places, e.g. 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 e.g. 0.251 and final answers to O decimal places, e.g. 2,510.) 1. 2. 3. Increase selling price Change compensation Purchase machinery Break-even point $ $ Which course of action do you recommend Step by Step Solution
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