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please answer and explain why. Crane Inc. had a bad year in 2021. For the first time in its history, it operated at a loss.
please answer and explain why.
Crane Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 100,800 units of product: net sales $2,520,000 total costs and expenses $2,816, 100, and net loss $296,100. Costs and expenses consisted of the following Total Fixed Variable $1,323,000 Cost of goods sold $1.975,680 $652,680 535,500 Selling expenses 651,420 115,920 Administrative expenses 189,000 73,080 115.920 $2,816,100 $1.512,000 $1,304.100 Management is considering the following independent alternatives for 2022 1 Increase unit selling price 25% with no change in costs and expenses Change the compensation of salespersons from fixed annual salaries totaling $252,000 to total salaries of $50,400 plus a 5% 2 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 50:50. Porchusewwhh tech factory machinery that will change the proportion between variable and the cost of goods cold to 50.50 al Compute the break even polet in sales dollars for 2021. Round contribution margin ratio to 4 decimal places of 0.2512 and final answer to decimal places 2,510) Break-even point $ b) Compute the break-even point in sales dollar under each of the alternative courses of action for 2022. Round contribution margin ratio to 3 decimal places. 0.251 and hiriat onwers to decimal places, s. 2510) Break even point 1 Increase selling price $ 2 Change compensation $ 3. Purchase machinery $ Which course of action do you recommend Step by Step Solution
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