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please answer with actual numbers NOT excell cells ex(b5+c2) Sandhill Inc. had a bad year in 2021. For the first time in its history, it
please answer with actual numbers NOT excell cells ex(b5+c2)
Sandhill 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 96,000 units of product: net sales $2,400,000; total costs and expenses $2,682,000; and net loss $282,000. Costs and expenses consisted of the following. Management is considering the following independent alternatives for 2022. 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $240,000 to total salaries of $48,000 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. (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer to 0 decimal places, e.g. 2,510.) Break-even point (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2022. (Round contribution margin ratio to 3 decimal places e. 0.251 and final answers to 0 decimal places, eg. 2,510.) Which course of action do you recommend Step by Step Solution
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