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 75,000 units of product: net sales $1,500,000; total costs and expenses $1.750,200, and net loss $250,200. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses Total $1,080,000 520,200 150,000 $1,750,200 Variable $600,000 95.000 55,000 $750,000 Fixed $480,000 425,200 95,000 $1,000,200 Management is considering the following independent alternatives for 2020. Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $198.000 to total salaries of $37.995 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 1. 2. 3. (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer to decimal places, es 2.510) e to search (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer to O decimal places, eg. 2,510.) Break-even point $ (b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to 3 decimal placeses. 0.251 and final answers to decimal places, eg. 2,510.) Break-even point Increase selling price $ Change compensation $ Purchase machinery 1 2 3 $ Which course of action do you recommend? Attempts: 0 of 7 used Submit Answer Safor Lite C ere to search Tiger Golf Accessories Sells golf shoes gloves and laser guided range-finder that measures distance Shown below are unit cost and sales data Unit sales price Unit variable costs Unit contribution margin Sales mix Pairs of Shoes $105 58 $47 32 % Pairs of Gloves $33 10 $23 44% Range- Finder $242 205 $37 24 % Fixed costs are $653.568 (21) Your answer is correct Calculate weighted average unit contribution margin. (Round answer to 2 decimal places es 10.25.) Weighted average unit contribution margin 3404 Type here to search TIBA Attempts (2) Compute the break-even point in units for the company. Break-even point units Save for Later Attempts: 0 of 7 used Submit (b) The parts of this question must be completed in order. This part will be available when you complete the part above. to search O Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Selling price Direct labor costs Other variable costs D $191.05 34.45 93.00 Product E $318.60 98.80 83.00 F $248.30 40.30 146.00 The company has 2.100 hours of labor available to build inventory in anticipation of the company's peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $13. (a) Your answer is correct. Determine the number of direct labor hours per unit. (Round answers to 2 decimal places, eg. 52.75.) Direct labor 265 Product D hours per unit a carch Direct labor Product D 2.65 hours per unit Product E 7,6 hours per unit Product F 3.1 hours per unit Attempts: 101 (b) Determine the contribution margin per direct labor hour. (Round intermediate calculation and final answers to 2 decimal plac 52.75.) Product D Product E Contribution margin per direct labor hour Attempts: 0 of 7 used Submit An Save for Later 0 - search the contribution margin per direct labor hour. (Round intermediate calculation and final answers to 2 decimal places, eg. Product D Product E Product F direct labor hour $ $ Attempts: 0 of 7 used Submit Answer C
