Carla Vista Manufacturing's sales slumped badly in 2022. For the first time in its history, it...

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Carla Vista 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 70,800 units of product: net sales $2,124,000; total costs and expenses $2,371,800; and net loss $247,800. Costs and expenses consisted of the amounts shown below: Total Variable Fixed Cost of goods sold $1,593,000 $1,097,400 $495,600 Selling expenses 566,400 147,500 418,900 Administrative expenses 212,400 135,700 76,700 $2,371,800 $1,380,600 $991,200 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 $236,000 to total salaries of $23,600 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 50:50. Carla Vista 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 70,800 units of product: net sales $2,124,000; total costs and expenses $2,371,800; and net loss $247,800. Costs and expenses consisted of the amounts shown below: Total Variable Fixed Cost of goods sold $1,593,000 $1,097,400 $495,600 Selling expenses 566,400 147,500 418,900 Administrative expenses 212,400 135,700 76,700 $2,371,800 $1,380,600 $991,200 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 $236,000 to total salaries of $23,600 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 50:50.