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Cerium-Ir break-even point under alternative mama! action. P214 [L0 01, I Tanek Co:p.'s sales slumped badly in 2022. For the rst time in its history.
Cerium-Ir break-even point under alternative mama! action. P214 [L0 01, I Tanek Co:p.'s sales slumped badly in 2022. For the rst time in its history. itoperated at a loss. The company's income statement showed the following results from selling 500,000 units of product: sales 52.500.000. total oosts and expenses 52.590.000. and net loss 590.000. Costs and expenses consisted of the following amounts. Ibtal Variable Fixed Cost of goods sold 52.140000 51.590000 5550.000 Selling expenses 250.000 122.000 1511.000 Administrative expenses 200.000 611.000 132.000 52.590.000 51.750.000 5840.000 Management is considering the following independent alternatives for 2023. 1. Increase the unit selling price 20% with no change in total costs. total expenses. and sales volume. 2. Change the compensation of sales personnel from xed annual salaries totaling 5140.000 to total salaries of 560.000 plus a 5% oomrnission on sales. All other total costs. total expenses. and total sales remain unchanged. Instructions I+ Compute the break-even point in sales dollars for 2022. b. Compute the break-even point in sales dollars urlder each of the alternative courses of action. b. Alternative 1 $2,000,000 {Round all ratios to nearest full percent] Which course of action do you recommend
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