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Is partially correct 2/5 Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The
Is partially correct 2/5 Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 80,000 units of product net sales $2.000.000, total costs and expenses $2,210,000 and net loss $210,000. Costs and expenses consisted of the following Total Cost of goods sold Selling expenses Administrative expenses $2.542.000 522.000 146,000 $2.210,000 Variable $1.051.000 93.000 56.000 $1.200.000 Fixed $491.000 429,000 90.000 $1010.000 Management is considering the following independent alternatives for 2020 1 2 Increase unit selling price 20% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $205.000 to total salaries of $42.000 plus a 5% commission on net sales Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50 3 a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to decimal places es. 0.2512 and final answer to O decimal places, e-3.2.510.) Break-even point 20 F3 Question 4 of 4
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