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Flounder 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
Flounder 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 575,500 units of product: sales $2.877,500, total costs and expenses $2.992,600, and not loss $115,100. Costs and expenses consisted of the amountshown below Total Cost of goods sold Selling expenses Administrative expenses 52,463,140 287.750 241,710 $2,992,600 Variable $1,830,090 105,892 78,268 $2,014,250 Fixed 5633,050 181,858 163,442 $978,350 Management is considering the following independent alternatives for 2018 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume 2. Change the compensation of salespersons from fived annual salaries totaling $172.650 to total salaries of $69,060 plus a commission on sales (a) Compute the break-even point in dollars for 2017 (Round final answer to decimal places, u.9. 1,225.) Break-even point (b) Compute the break-even point in dollars under each of the alternative courses of action, (Round selling price per unit to 2 decimal places 1.9.3.25 and other calculations to 0 decimal places, e.g. 209 and also final answer to decimal places, s.g. 1,225.) Break-even point for alternative 1 5 Break-even point for alternative 2 5
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