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Please show detail calculation for every step. P6.1 (LO 1), AN Lanza SA had a bad year in 2019. For the first time in its
Please show detail calculation for every step.
P6.1 (LO 1), AN Lanza SA had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 80,000 units of product: net sales R$2,000,000 : total costs and expenses R$2,235,000 : and net loss R$235,000. Costs and expenses consisted of the following. Management is considering the following independent alternatives for 2020. 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed unnual salaries totaling R$200.000 to total salaries of R\$40.000 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. Instructions a. Compute the break-even point for 2020 . b. Compute the break-even point under each of the alternative courses of action. (Round to the neares real.) Which course of action do you recommendStep by Step Solution
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