Crane Inc. had a bad year in 2022. For the first time in its history, it operated at a loss. The companys income statement showed the following results from selling 75,000 units of product: net sales $1,500,000; total costs and expenses $1,780,200; and net loss $280,200. Costs and expenses consisted of the following.

	Total		Variable		Fixed
Cost of goods sold		$1,106,000		$598,000		$508,000
Selling expenses		522,200		95,000		427,200
Administrative expenses		152,000		57,000		95,000
		$1,780,200		$750,000		$1,030,200

Compute the break-even point in dollars under each of the alternative courses of action for 2023. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to 0 decimal places, e.g. 2,510.)

Management is considering the following independent alternatives for 2023.

Increase unit selling price 25% with no change in costs and expenses.

Change the compensation of salespersons from fixed annual salaries totaling $200,000 to total salaries of $40,010 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.

Question 1

(a) Compute the break-even point in dollars for 2022. (Round contribution margin ratio to 2 decimal places e.g. 0.25 and final answer to 0 decimal places, e.g. 2,510.)

----------------$2,060,400.00?-------------

Question 2

Compute the break-even point in dollars under each of the alternative courses of action for 2023. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to 0 decimal places, e.g. 2,510.)

Enter your answer in the following format: 1. $x,xxx,xxx 2. $x,xxx,xxx 3. $x,xxx,xxx

Question 3

Which alternative do you recommend?

???