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help asap! Ivanhoe Inc. had a bad year in 2021 . For the first time in its history, it operated at a loss. The company's
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Ivanhoe Inc. had a bad year in 2021 . For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 68,800 units of product net sales $1,720,000; total costs and expenses $1,922,100; and net los $202,100. Costs and expenses consisted of the following. Management is considering the following independent alternatives for 2022. 1. Increase unit selling price 25% with no change in costs and expenses 2. Change the compensation of salespersons from foxed annual salaries totaling $172,000 to total salaries of $34,400 plus a 5% commission on net sales. 3. Purchase new high.tech factory machinery that will change the proportion between variable and fixed cost of goods soid to 50:50. (a) Compute the break-even point in sales dollars for 2021 . (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to 0 decimal places, e.g. 2,510.) Break-even point (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2022. (Round contribution marsin ratio to 3 decimal plages e.s. 0.251 and final answers to 0 decimal places, e.s. 2,510.) Step by Step Solution
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