Chapter 19 Q4/10

Sunland Inc had a bad year in 2024. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 92,800 units of product net sales $2,320,000, total costs and eppenses $2,592,600, and net los5. $272,600, Costs and eepenses consisted of the following Maragement is considering the following independent alternatives for 2025. 1. Increase unit selling grice 25% with no change in costs and expenses 2. Change the compensation of satespersons from fued annual sataries totaling $232,000 to total salaries of $46,400 plusa 5% commistion pn net sales 3. Purchaservew high-tech factory machinery that will change the proportion between yaiableand foxed cont of goods sold to 50:50 (a) Compute the breakeven point in sales dollars for 2024 , (Round contritution margin fotio to 4 decimal ploces es a.2512 and final answer to 0 decimal ploces, es 2510J (a) Compute the break-even point in sales dollars for 2024. (Round contribution margin rotio to 4 decinal ploces es, 0.2512 and final answer to 0 decimal ploces, eg, 2,510.) Break-even point (b) Compute the break even point in sales dollars under eachof the alternative courses of action for 2025. (Round contribution margin retio to 3 decimal ploces es. 0.251 and finat enswers to 0 decimal places, es, 2.510.) Which course of action do you recommend