Pharoah Inc. had a bad year in 2024. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 72,000 units of product: net sales $1,800,000; total costs and expenses $2,011,500; and net loss $211,500. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses 2. Total $1,411,200 3. 465,300 135,000 Variable Fixed $945,000 $466,200 82,800 52,200 382,500 82,800 Management is considering the following independent alternatives for 2025. $2,011,500 $1,080,000 $931,500 B Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $180,000 to total salaries of $36,000 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. (a) Compute the break-even point in sales dollars for 2024. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and find answer to 0 decimal places, e.g. 2,510.)

Pharooh lnc. had a bad year in 2024. For the first time in its history, it operated at aloos. The compury's income statemeit showed the following results from selling 72,000 units of product net sales $1,800,000; total costs and experses $2,011,500; and net loss $211,500. Costs and experses constisted of the followine Management is considering the following independent alternatives for 2025. 1 increase unit selifing price 25k with no change in costs and expenses. 2. Change the compencation of salespersons from fued annual waties totaling $380,000 to total salaries of $35,000 plus a 5K commission on net sales 3. Purchase new high-tech factory machinery thut will change the proportion between variable and fixed cast of goods sold to 50,50 answer to 0 decind placks, ex 2,510 ) $211,500, Conti and exerses conshifif of the followire: Markepment is considerincthe fallowirc independent atternatives for aces. commistion qopet sale: 5050 . anower to 0 ducind ploces est 2510 . Break-even point notio to 3 dicinal ploceses 0.251 and final answers to odecinol places, es 2.510J Which course of action do vou recommend