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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
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
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