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Question 2 of 3 - / 1 VIEW PUNCIOS Current Attempt in Progress Tanek Corp's sales slumped badly in 2017. For the first time in
Question 2 of 3 - / 1 VIEW PUNCIOS Current Attempt in Progress 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 585,500 units of product: sales $2,927,500, total costs and expenses $3,035,440, and net loss $107,940. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $2,496,780 292,750 245,910 $3,035,440 $1,920,440 107,732 79,628 $2,107,800 $576,340 185.018 166,282 $927,640 Management is considering the following independent alternatives for 2018. 1. 2. Increase unit selling price 20% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $175,650 to total salaries of $70,260 plus a 5% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places, eg. 1,225.) Break-even point $ 3,317,833 (b) Compute the contribution margin under each of the alternative courses of action. (Round final answers to 0 decimal places, e.g. 1,225.) Contribution margin for alternative 1 43.09 % Contribution margin for alternative 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 O decimal places, e.g. 20% and also final answers to 0 decimal places, e.g. 1,225.) Break-even point for alternative 1 $ Break-even point for alternative 2 $ Which course of action do you recommend
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