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Marigold Corp.'s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company's income statement showed the

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Marigold Corp.'s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 585,500 units of product: sales $2,927,500, total costs and expenses $3,044,600, and net loss $117,100. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,505,940 $1,861,890 $644,050 Selling expenses 292,750 107,732 185,018 Administrative expenses 245,910 79,628 166,282 Oo $3,044,600 $2,049,250 $995,350 Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 24% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $175,650 to total salaries of $70,260 plus a 6% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to O decimal places, e.g. 1,225.) Break-even point $ (b) Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places, e.g. 5.25 and other calculations to 0 decimal places, e.g. 20% and also final answer to O decimal places, e.g. 1,225.) Break-even point for alternative 1 Break-even point for alternative 2 Mb Which course of action do you recommend? 1:02 PM

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