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Problem 6.43A a-b (Part Level Submission) Gorham Manufacturing's sales slumped badly in 2020. For the first time in its history, it operated at a loss.

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Problem 6.43A a-b (Part Level Submission) Gorham Manufacturing'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 from selling 57,000 units of product: net sales $1,539,000; total costs and expenses $1,834,488; and net loss $295,488. Costs and expenses consisted of the amounts shown below Cost of goods sold Selling expenses Administrative expenses Total $1,189,488 463,000 182,000 $1,834,488 Variable $794,520 130,000 122,000 $1,046,520 Fixed $394,968 333,000 60,000 $787,968 Management is considering the following independent alternatives for 2021. 1. Increase the unit selling price by 25% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $217,000 to total salaries of $20,000 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. Calculate the break-even point in dollars under each of the alternative courses of action. (Round contribution margin rate to 2 decimal places answers to decimal places, e.g. 5,275.) 1728000 Break-even point if unit selling price increases by 25% 2225807 Break-even point if there is a change in compensation 2242508 Break-even point if there is a purchase of new high-tech factory machinery LINK TO TEXT LINK TO TEXT LINK TO TEXT

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