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please answer the second part of question( break-even point if there is change in compensation) exaplin this properly with proper steps Crane Manufacturing's sales slumped
please answer the second part of question( break-even point if there is change in compensation)
Crane Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 75,600 units of product: net sales $2.268.000 total costs and expenses $2,532,600; and net loss $264,600. Costs and expenses consisted of the amounts shown below: Cost of goods sold Selling expenses Administrative expenses Total $1,701,000 604.800 226,800 Variable $1,171,800 157,500 144,900 $1,474.200 Fixed $529.200 447.300 81.900 $2,532,600 $1,058,400 Management is considering the following independent alternatives for 2023 1. Increase the unit selling price by 30% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $252,000 to total sataries of $25,200 plus a 5% 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 Your answer is partially correct. Calculate the break-even point in dollars under each of the alternative courses of action (Round contribution margin ratio to O decimal places, eg. 15% and final answers to decimal places, eg. 5,275.) Break-even point if unit selling price increases by 30% 2116800 Break-even point if there is a change in compensation 2772000 Break-even point if there is a purchase of new high-tech factory machinery 2815714 exaplin this properly with proper steps
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