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please explain this properly with proper steps Crane Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a
please explain this properly with proper steps
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: Total Variable $1,171,800 Fixed $529,200 $1,701,000 Cost of goods sold Selling expenses Administrative expenses 604.800 157.500 447,300 226,800 144,900 81,900 $2,532,600 $1,474,200 $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 salaries 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 (b) 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% $ Break-even point if there is a change in compensation $ Break-even point if there is a purchase of new high-tech factory machinery e Textbook and Media Sime for Later Attempts: 0 of 4 used Submit Step by Step Solution
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