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Managerial accounting. Can someone help -Your answer is partfally correct. Midlands Inc. had a bad year in 2016. For the first time in its history,
Managerial accounting.
Can someone help
-Your answer is partfally correct. Midlands Inc. had a bad year in 2016. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 78,000 units of product: net sales $1,560,000; total costs and expenses $1,800,000; and net loss $240,000. Costs and expenses consisted of the following. Variable Fixed Total $1,134,000 $633,000 $501,000 520,000 91,000 429,000 Administrative expenses 146,000 56.000 90,000 $1.800,000 $780,000 $1,020,000 Cost of goods sold Selling expenses Management is considering the following independent alternatives for 2017 Increase unit selling price 20% with no change in costs and expenses. 1. hange the compensation of salespersons from fixed annual salaries totaling $204,000 to total salaries of $45,000 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 sold to 50.50. Sold to 50:50 (a) Compute the break-even point in dollars for 2017.(Round contribution margin ratio to 2 decimal places eg. o.25 and f 2,510.) nal answer tor0 decimal places,eg Break-even point $ 2040000 (b) Compute the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answers to O decimal places, eg. 2,510.) Break-even point 1. Increase selling price $ 2. Change compensation $ 3. Purchase machinery $ 1748568 1913333 2127660 Which course of action do you recommend? Alternative 1 eTextbook and Media Check Answer Attempts: 2 of 3 used Save for LaterStep by Step Solution
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