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Problem 19-3A Dousmann Corp.'s sales slumped badly in 2014. For the first time in ts history, it operated at a loss. The companys income statement

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Problem 19-3A Dousmann Corp.'s sales slumped badly in 2014. For the first time in ts history, it operated at a loss. The companys income statement showed the following results from selling 648.000 units of product: sales $2,592.000, total costs and expenses $2.743.200: and net loss $151.200. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses 200 $712,800 181,440 164.160 $2,743,200 $1,684,800 $1,058.400 259.200 216,000 77.760 51,840 Management is considering the following independent alternatives for 2015 1. Increase unit selling price 24% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from xed annual salaries totaling $162,000 to total salaries of S64.800 plus a 5% commission on sales. (a) Compute the break-even point in dollars for 2014. (Round final answer to O decimal places, e.g. 1,223) Break-even point (b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 Contribution margin for alternative 1 Contribution margin for alternative 2 decimal places, e.g. 1,225) and Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price por unit to 2 decimal places, o.s. 5.25 other calculations to 0 decimal places, e.g. 2006 and also final answer to 0 decimal places, eg. 1,225) Break even point for alternative 1 Which course of action do you recommend? Click if you would like to Show Work for this question: Rean Show Wark LINK TO WEDEO TO TEXT Question Attempts: O of 3 used SUNNIT ANSWER SAVE ,OR LATER ?I

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