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Please give me the Break-even point id there is a purchase of a new high-tech factory machinery Cullumber Manufacturing's sales slumped badly in 2022. For
Please give me the Break-even point id there is a purchase of a new high-tech factory machinery
Cullumber 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 63,600 units of product: net sales $1,908,000; total costs and expenses $2,130,600; and net loss $222,600. Costs and expenses consisted of the amounts shown below: Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 25% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $212,000 to total salaries of $21,200 plus a 10% 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 0 decimal places, e.g. 15% and final answers to 0 decimal places, e.g. 5,275.) Break-even point if unit selling price increases by 25% $ Break-even point if there is a change in compensation $ Break-even point if there is a purchase of new high-tech factory machinery $ Cullumber 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 63,600 units of product: net sales $1,908,000; total costs and expenses $2,130,600; and net loss $222,600. Costs and expenses consisted of the amounts shown below: Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 25% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $212,000 to total salaries of $21,200 plus a 10% 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 0 decimal places, e.g. 15% and final answers to 0 decimal places, e.g. 5,275.) Break-even point if unit selling price increases by 25% $ Break-even point if there is a change in compensation $ Break-even point if there is a purchase of new high-tech factory machinery $Step by Step Solution
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