Can you please help me with problem P6-1B

Problems: Set B 1 PROBLEMS: SET B McCure Corporation had a bad year in 2016, operating at a loss for the first time in Compute break-even poant units of product: net sales $2,400,000; total costs and expenses $2,472,000, and action its history. The company's income s s net loss $72,000. Costs and expenses consisted of the following atement showed the following results from sellirg under alternative courses of (LO 1), AN Total 681,000 305,000356,000 VariableFixed Cost of goods sold Selling expenses $1,486,000 $1,070,000 $416,000 325,000 inistrative expenses 110,000 $1,536,000 $2,472,000 $936,000 Management is considering the following independent alternatives for 2017 l. Increase unit sell ing price 25%with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $170,000 Purchase new high-tech factory machinery that will change the proportion betweer to total salaries of $50,000 plus a 6% commission on net sales. 3. variable and fixed cost of goods sold to 40:60 (a) Compute the break-even point in dollars for 2017 (b) Compute the break even point in dollars under each of the alternative courses of (b) (2) $2,720,000 action. Which course of action do you recommend? Round to the nearest dollar P6-2B Huber Corporation has collected the following information after its first year of Compute break-even point sales. Sales were $1,000,000 on 40,000 units, selling expenses $200,000 (30% variable andmanonofsafeyrni and 70% fixed); direct materials S327,000; direct labor $190,000; administrative and prepare a CVP income expenses $250,000 (30% variable and 70% fixed); manufacturing overhead $240,000 statement before and (20% variable and 80% fixed). Top management has asked you to do a CVP analysis so after changes m besmess that it can make plans for the coming year. It has projected that unit sales will increase evvt by 20% next year. Instructions (LO 1), AN (a) Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year: (Assume that fixed costs will remain the same in the projected year.) (b) Compute the break-even point in units and sales dollars for the current year (b)67,600 units (c) The company has a target net income of $120,000. What is the required sales in dollars for the company to meet its target? (d) If the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? That is, what is its margin of safety ratio? (e) The company is considering a purchase of equipment that would reduce its direct labor costs by $90,000 and would change its manufacturing overhead costs to 10% variable and 90% fixed (assume total manufacturing overhead cost is $240,000. as above). It is also considering switching to a pure commission basis for its sales staff This would change selling expenses to 80% variable and 20% fixed (assume total sell- ing expense is $200,000, as above). Compute (1) the contribution margin and (2) the contribution margin ratio, and (3) recompute the break-even point in sales dollars. Comment on the effect each of management's proposed changes has on the break- (e) (3) s1,372,611 even point. P6-3B The Eatery is a restaurant in DeKalb, Illinois. It specializes in deluxe sandwiches Deternine break even sales in a moderate price range. Michael Raye, the manager of The Eatery, has determined that under alternative sales during the last 2 years the sales mix and contribution margin ratio of its offerings are as strateges ana results follows. (LO 3), AN Contribution Margin Ratio 60% 25% 40% 80% Percent of Total Sales 15% Appetizers Main entrees Desserts Beverages 15%