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Problem 18-4A a-b (Part Level Submission) (Video) Cullumber Corp.'s sales slumped badly in 2020. For the first time in its history, it operated at a
Problem 18-4A a-b (Part Level Submission) (Video) Cullumber Corp.'s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 585,500 units of product: sales $2,927,500, total costs and expenses $3,036,840, and net loss $109,340. Costs and expenses consisted of the amounts shown below Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $2,498,180 $1,920,440 $577,740 107,732 185,018 166,282 $3,036,840 $2,107,800 $929,040 292,750 245,910 79,628 Management is considering the following independent alternatives for 2021 I. Increase unit selling price 20% with no change in costs, expenses, and sales volume 2. Change the compensation of salespersons from fixed annual salaries totaling $175,650 to total salaries of$70,260 plus a 4% commission on sales Your answer is correct Compute the break-even point in dollars for 2020 Break-even point 3,318,000 Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 Contribution margin for alternative 2 Compute the break-even point in dollars under each of the alternative courses of action. Break-even point for alternative 1 Break-even point for alternative 2 s Which course of action do you recommend
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