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Managerial accounting. Can someone please help? I can't figure this out and I only have 1 try left. -Your answer is partially correct. Midlands Inc.
Managerial accounting.
Can someone please help? I can't figure this out and I only have 1 try left.
-Your answer is partially 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. TotalVariable Fixed $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 $1,134,000 Selling expenses Management is considering the following independent alternatives for 2017 Increase unit selling price 20% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $204,000 to total salaries of $45,000 plus a 5% commission on net sales factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50 (a) Compute the break-even point in dollars for 2017.(Round contribution margin ratio to 2 decimal places eg. 0.25 and final answer to 0 decimal places, eg 2,510.) 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 eg 0.2512 and final answers to O decimal places, e.g. 2,510.) Break-even point 1748568 1. Increase selling price 2. Change compensation $ 3. Purchase machinery 1913333 2127660 Which course of action do you recommend? Alternative 1 eTextbook and Media Check Answer Save for Later Attempts: 2 of 3 usedStep by Step Solution
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