Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CHAPTER SIX: Homework Problems, se Question 1 of 4 > -725 Cullumbering had a bad narin 2031. For the first time in its Historytered to

image text in transcribed
image text in transcribed
CHAPTER SIX: Homework Problems, se Question 1 of 4 > -725 Cullumbering had a bad narin 2031. For the first time in its Historytered to the company income statement showed the following results from the 102.400 units of producte ale $2.500.000 total costs anderen 20,000 andnes 300.000 stand opere consisted of the following Total Variable Fred 32.007040 51344,000 56630040 Cost of goods sold Seting penes Administrative 661,760 117.760 544000 192.000 74,240 117.760 512800 $2,500,000 $1.536,000 Management is considering the following independent alternatives for 2022 + Increase unitsiling price 25% with no change in costs and expenses Change the compensation of person from found annual sutaries totalegs 258,000 to total starkt of 51.200 in a 5 Comont on ne sales Purchase new bil-tech factory machinery that will change the proportion betweenvariable and hand cont of poods sold to 50:50 Management is considering the following independent alternatives for 2022. 1. 2. Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $ 256,000 to total salaries of $ 51,200 plus a 5% commission on net sales. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50 3. (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer to decimal places, eg. 2,510.) Break-even point 3312000 (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2022. (Round contribution margin ratio to 3 decimal places eg. 0.251 and final answers to decimal places, eg, 2,510.) Break-even point 1. Increase selling price $ 3312000 2. Change compensation 3. Purchase machinery

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using Microsoft Excel And Access 20 For Accounting

Authors: Glenn Owen

5th Edition

133751229X, 9781337512299

More Books

Students also viewed these Accounting questions

Question

plan how to achieve impact in practice from your research;

Answered: 1 week ago