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please give me answers to the following questions Wildhorse Inc had a bad year in 2021. For the first time in its history, it operated
please give me answers to the following questions
Wildhorse 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 104,000 units of product net sales $2,600,000; total costs and expenses $2.905,500; and net loss $305,500. Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold $2,038,400 $1,365,000 $673,400 Selling expenses 672,100 119,600 552,500 Administrative expenses 75,400 119,600 195,000 $2,905,500 $1.560,000 $1,345,500 Management is considering the following independent alternatives for 2022. 1 2. Increase unit selling price 25% with no change in costs and expenses Change the compensation of salespersons from fixed annual salaries totaling $260,000 to total salaries of $52,000 plus a 5% commission on net sales Duchach 3. Purchase new high-tech factory machinery that will change the proportion between variable and foxed cost of goods sold to 50:50. (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal places es. 0.2512 and final answer to decimal places, e$ 2510) Break-even point $ 622,750 (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 eg. 0.251 and final answers to decimal places, es 2,510.) Break-even point 1. Increase selling price $ 2,587 500 2 Change compensation $ 1.137.500 Step by Step Solution
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