Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crane Corp's sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Crane Corp's sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 585,500 units of product: sales $2,927,500, total costs and expenses $3,024,875, and net loss $97,375. Costs and expenses consisted of the amounts shown below. Variable Cost of goods sold Selling expenses Administrative expenses Total $2.486,215 292.750 245,910 $3.024.875 $2.008,265 107.732 79.628 Fixed $477.950 185,018 166.282 $829,250 $2,195,625 Management is considering the following independent alternatives for 2021. 1. 2. Increase unit selling price 25% with no change in costs, ses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $175,650 to total salaries of $70.260 plus a 5% commission on sales. e_..pptx (a) Compute the break-even point in dollars for 2020. Break-even point $ Blossom Company had $149.400 of net income in 2019 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,600. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Blossom Company is under pressure from stockholders to increase net income by $60,000 in 2020. (a) Compute the number of units sold in 2019. units Cullumber Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,530 per month. One of the barbers serves as the manager and receives an extra $570 per month. In addition to the base rate, each barber also receives a commission of $5.35 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines $270 $1,100 $0.40 $190 $30 per month per month per haircut per month plus $0.25 per haircut per month Cullumber currently charges $15 per haircut. Utilities $190 per month plus $0.25 per haircut $30 per month Magazines Cullumber currently charges $15 per haircut. Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to decimal places eg. 225) Total variable cost per haircut Total fixed

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

College Accounting A Practical Approach Chapters 1-25

Authors: Jeffrey Slater

12th Edition

013277206X, 978-0132772068

More Books

Students also viewed these Accounting questions

Question

Can sound waves be polarized? Explain. Discuss.

Answered: 1 week ago

Question

Alcohol and drug use among student athletes

Answered: 1 week ago