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Problem 19-3A Tanek Corp.'s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company's income statement
Problem 19-3A Tanek Corp.'s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 580,500 units of product sales 2,902,500, total costs and expenses $3,018,600, and net loss $116,100. Costs and expenses consisted of the amounts shown below. Variable O $2,484,540 $1,845,990 $638,550 106,812 183,438 78,948 164,862 $3,018,600 $2,031,750 $986,850 Total Fixed Cost of goods sold Selling expenses Administrative expenses 290,250 243,810 Management is considering the following independent alternatives for 2018 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 $174,150 to total salaries of $69,660 plus a 6% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places, e.g. 1,225.) Break-even point (b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places, e.g. 1,225.) Contribution margin for alternative 1 Contribution margin for alternatlve 2 Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places, e.g. 5.25 and other calculations to 0 decimal places, e.g. 20% and also final answer to 0 decimal places, eg. 1,225.) Break-even polnt for alternatlve 1 Break-even point for alternative 2s Which course of action do you recommend
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