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please help?! Midlands Inc. had a bad year in 2016. For the first time in its history, it operated at a loss. The company's income

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Midlands Inc. had a bad year in 2016. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 77,000 units of product: net sales $1,540,000; total costs and expenses $1,656,000; and net loss $116,000 Costs and expenses consisted of the following Total Variable Fixed $984,000 Cost of goods sold $465,000 $519,000 Selling expenses 521.000 428,000 93,000 Administrative expenses 151,000 58,000 93,000 $1.656,000 $616,000 $1,040,000 Management is considering the following independent alternatives for 2017. 1. Increase unit selling price 25% with no change in costs and expenses Change the compensation of salespersons from fixed annual salaries totaling $198,000 to total salaries of $38,000 plus a 5% 2 commission on net sales Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. 3 (a) Compute the break-even point in dollars for 2017.(Round contribution margin ratio to 2 decimal places e.g, 0.25 and final answer to O decimal places, e.g. 2.510) (a) Compute the break-even point in dollars for 2017. (Round contributlon margin ratio to 2 decimal places eg. O.25 and final answer to 0 declmal places, eg. 2,510) Break-even point (b) Compute the break-even point in dollars under each of the alternative courses of action. (Round contributlon margin ratio to 4 decimal places eg. 0.2512 and final answers to O decimal places, eg. 2,510.) Break-even point 1 Increase selling price 2. Change compensation Purchase machinery 3 Which course of action do you recommend? Attempts: 1 of 7 used Save for Later Check

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