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Compute break- under allema action (LO 1), AN P6-1B McCure Corporation had a bad year in 2016, operating at a loss for the first time
Compute break- under allema action (LO 1), AN P6-1B McCure Corporation had a bad year in 2016, operating at a loss for the first time in its history. The company income statement showed the following results from selling 200,000 units of product net sales $2.400.000: total costs and expenses $2,472,000; and net loss $72,000. Costs and expenses consisted of the following: Total Variable Fixed Cost of goods sold $1,486,000 $1.070,000 $416,000 Selling expenses 681,000 356,000 325,000 Administrative expenses 305,000 110,000 195,000 $2.472,000 $1,536,000 $936,000 Management is considering the following independent alternatives for 2017 1. Increase unit selling price with no chances in costs and expenses 2. Change the compensation of salespersons from fixed annual salaries totaling $170,000 to total salaries of $50.000 plus a commission on net sales. 3. Purchase high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 40:00 Instructions Compute the break even point in dollars for 2016 (b) Compute the believer point in dolls under each of the alternative courses of berion during 2017 Wuch s faction do you m ent Round to the nearest dollar bl252,120.000
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