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First CORRECT answer will recieve a thumbs up Problem 19-3A Tanek Corp.'s sales slumped badly in 2017. For the first time in its history, it
First CORRECT answer will recieve a thumbs up
Problem 19-3A Tanek Corp.'s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 560,500 units of product: sales $2,802,500, total costs and expenses $2,914,600, and net loss $112,100. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $2,398,940 $1,782,390 $616,550 103,132 177,118 76,228 159,182 $2,914,600 $1,961,750 $952,850 280,250 235,410 Management is considering the following independent alternatives for 2018 1. Increase unit selling price 21% with no change in costs, expenses, and sales volume 2. Change the compensation of salespersons from fixed annual salaries totaling $168,150 to total salaries of $67,260 plus a 5% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places, e.g. 1,225.) Break-even point (b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places, e.g. 1,225.) Contribution margin for alternative 1 Contribution margin for alternative 2 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, eg. 2096 and also final answer to 0 decimal places, eg. 1,225.) Break-even point for alternative 1 Break-even point for alternative 2 Which course of action do you recommendStep by Step Solution
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