Cullumber Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664ff538c4e0f_152664ff5385b3a1.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664ff5396d3d0_153664ff5390aa30.jpg)
Transcribed Image Text:
Cullumber Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 63,600 units of product: net sales $1,908,000; total costs and expenses $2,130,600; and net loss $222,600. Costs and expenses consisted of the amounts shown below: Total Variable Fixed Cost of goods sold $1,431,000 $985,800 $445,200 Selling expenses 508,800 132,500 376,300 Administrative expenses 190,800 121,900 68,900 $2.130,600 $1,240,200 $890,400 Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 25% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $212,000 to total salaries of $21,200 plus a 10% 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. Calculate the break-even point in dollars for 2022. Break-even point $ 2544000 Calculate the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to 0 decimal places, e.g. 15% and final answers to O decimal places, e.g. 5.275.) Break-even point if unit selling price increases by 25% Break-even point if there is a change in compensation Break-even point if there is a purchase of new high-tech factory machinery $ $ $ Cullumber Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 63,600 units of product: net sales $1,908,000; total costs and expenses $2,130,600; and net loss $222,600. Costs and expenses consisted of the amounts shown below: Total Variable Fixed Cost of goods sold $1,431,000 $985,800 $445,200 Selling expenses 508,800 132,500 376,300 Administrative expenses 190,800 121,900 68,900 $2.130,600 $1,240,200 $890,400 Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 25% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $212,000 to total salaries of $21,200 plus a 10% 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. Calculate the break-even point in dollars for 2022. Break-even point $ 2544000 Calculate the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to 0 decimal places, e.g. 15% and final answers to O decimal places, e.g. 5.275.) Break-even point if unit selling price increases by 25% Break-even point if there is a change in compensation Break-even point if there is a purchase of new high-tech factory machinery $ $ $
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
For a long time, your firm has been paying its workers a wage of $20 per hour and your employees have been happy to work 40 hours per week at this wage. Business is suddenly booming and your firm...
-
In what significant ways does APT differ from the CAPM?
-
Financial Statement Preparation Montage Company reported the following income statement and balance sheet amounts at December 31, 2000: a. Prepare an income statement for Montage Company for 2000. b....
-
Shell Company, an 85% owned subsidiary of Plaster Company, sells merchandise to Plaster Company at a markup of 20% of selling price. During 2011 and 2012, intercompany sales amounted to $442,500 and...
-
QUESTION 4 Historical data indicated that the time required to service the conveyor belt at Coca-Cola Amatil's Richlands operations can be modelled as a normal distribution with a standard deviation...
-
Epsilon Foods Epsilon Foods produces two products: Chocolate and Cookies. Chocolate: Direct materials - $70,000, Direct labor - $40,000, Overhead - $20,000 Cookies: Direct materials - $50,000, Direct...
-
11. The following application has seven syntax errors. What are they? // * Test.java * What's wrong application. * Student Name */ package testMyKnowledge; /** * The Test class should display a...
-
The Oracle DBMS is used as an example many times throughout the text. Use the Internet to find at least three resources that you think would be helpful to an Oracle Database Administrator in his/her...
-
Build a chart comparing 3 different Leadership Models, Universal Model of Leadership, Reactive Leader and Autocratic Model of Leadership presented in this week's reading.?
-
Breast Implant company spent $ 2,000,000 for 10, 000 silicone gel produced, & each silicone gel requires 2 worker hours and 10 hours of direct labor. Direct Labor paid = $20.00 (Hourly) What is cost...
-
Describe how the adaptive leadership toolkit will be used and who within the organization will manage it. Your response should address the following: Who is the target audience for the adaptive...
-
Which best expresses a potential difficulty with preference ballots 1 point Because preference ballots are so rare it is easy to forge extra copies of them and vote illegally Preference ballots only...
-
Discuss the pros and cons of profit wealth maximization as a financial goal. LO1
-
List the four levels in the decision-making process. LO1
-
Define management by exception. LO1
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App