Question 3 of 13 - / 1 View Policies Current Attempt in Progress Carla Vista Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 76,800 units of product: net sales $1.920,000; total costs and expenses $2,145,600 and net loss $225,600. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,505,280 $1.008.000 $497.280 Selling expenses 496,320 88,320 408,000 Administrative expenses 144,000 55,680 88,320 $2,145,600 $1.152,000 $993,600 Management is considering the following independent alternatives for 2022. Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $192,000 to total salaries of $38,400 plus a 5% commission on net sales. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50 1. 2. 3. (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer to decimal places, es 2,510.) Break-even point $ (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2022. (Round contribution margin ratio to 3 decimal places eg, 0.251 and final answers to decimal places, e.g. 2,510) Break-even point Management is considering the following independent alternatives for 2022 1. 2. Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $192,000 to total salaries of $38,400 plus a 5% commission on net sales Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50 3. (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal places es. 0.25 12 and final answer to decimal places, es 2,510.) Break-even point $ (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2022. (Round contribution margin ratio to 3 decimal places eg. 0.251 and final answers to decimal places, eg. 2,510.) Break-even point Increase selling price 1. $ 2. Change compensation $ 3. Purchase machinery $ Which course of action do you recommend? e Textbook and Media Save for Later Attempts: 0 of 3 used Submit