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Dousmann Corp.'s sales slumped badly in 2014. For the first time in its history, it operated at a loss. The company's income statement showed the
Dousmann Corp.'s sales slumped badly in 2014. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 708,000 units of product: sales $2, 832,000; total costs and expenses $2, 997, 200; and net loss $165, 200. Costs and expenses consisted of the amounts shown below. Management is considering the following independent alternatives for 2015. Increase unit selling price 22% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $177,000 to total salaries of $70, 800 plus a 6% commission on sales. Compute the break-even point in dollars for 2014. (Round final answer to 0 decimal places, e.g. 1, 225.) Compute the contribution margin under each of the alternative courses of action. (Round final answers to 0 decimal places, e.g. 1, 225.) Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places, e.g. 5.25 and other calculations to 0 decimal places, e.g. 20% and also final answers to O decimal places, e.g. 1, 225.) Which course of action do you recommend
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