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Fredonia Inc. had a bad year in 2013. For the first time in its history, it operated at a loss. The company's income statement showed

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Fredonia Inc. had a bad year in 2013. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 79,700 units of product Net sales $1,522,270, total costs and expenses $1,733,900; and net loss $211,630. Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses 1,201,000 $778,000 $423,000 78,300 347,000 62,800 $1,733,900 $901,100 $832,800 425,300 107,600 44,800 Management is considering the following independent alternatives for 2014. I. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $204,100 to total salaries of$44,100 plus a 5% cornmission on net sales. and fixed cost of goods sold to 50:50. 1) 3. Purchase new high-tech factory machinery that will change the proportion between variable Compute the break-even point in dollars for 2014. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answers to O decimal places, e.g. 2,510 Compute the breakeven point in dollars under each of the alternative courses of action. contribution margin ratio to 4 decimal places e.g. o.2512 and final answers to 0 decimal places, e-g. 2,510.) 2) Round

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