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P6-1C Greer Manufacturing had a bad year in 2016, operating at a loss for the first time in its history. The companys income statement showed

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P6-1C Greer Manufacturing had a bad year in 2016, operating at a loss for the first time in its history. The companys income statement showed the following results from selling 200,000 units of product: Net sales $2.000.000; total costs and expenses $2,340,000, and net loss $340.000. Costs and expenses consisted of the following Total Variable Cost of goods sold Fixed $1.395.000 Selling expenses $ 975.000 $420.000 585.000 325.000 260,000 Administrative expenses 360 000 200,000 160.000 $2.340.000 $1.500,000 $840,000 Management is considering the following independent alternatives for 2017, 1. Increase unit selling price 30% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $170,000 to total salaries of $50.000 plus a 6% 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 40:60. Instructions (a) Compute the break-even point in dollars for 2017. (b) Compute the break-even point in dollars under each of the alternative courses of action. Which course of action do you recommend? Round to the nearest dollar

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