compute the break-even point in dollars under each of the alternative courses of action for 2020

4941/assignments/51937 1/5 Question 5 View Policies Show Attempt History Current Attempt in Progress - Your answer is partially correct. Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 79,000 units of product: net sales $1.975,000; total costs and expenses $1.997,300; and net loss $22,300. Costs and expenses consisted of the following Cost of goods sold Selling expenses Total Variable Fixed $1,345,250 $840,500 $504,750 506,050 91,000 415,050 146,000 56,000 90,000 $1,997,300 $987,500 $1,009,800 Administrative expenses Management is considering the following independent alternatives for 2020. 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $199,000 to total salaries of $42.985 plus a 5% commission on net sales. 2 Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50 History Bookmarks People Tab Window Help M e xC) Wed 8:07 PM a courses/4941/assignments/51937 1. Wrase semi pre 230 WIL TO NIE LUSUS LAPSES. 2. Change the compensation of salespersons from fixed annual salaries totaling $199,000 to total salaries of $42,985 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 (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to 2,510.) decimal places. e. Break-even point $ 2019600 i (b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to decimal places, e.g. 2,510.) Break-even point 1. Increase selling price $ 2. Change compensation 3. Purchase machinery Which course of action do you recommend? e Textbook and Media Attempts: 1 of 3 used Submit Answer Save for Later