Sandhill Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated...
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Sandhill Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 58,800 units of product: net sales $1,764,000; total costs and expenses $1,969,800; and net loss $205,800. Costs and expenses consisted of the amounts shown below: Cost of goods sold Total $1,323,000 Variable $911,400 Fixed $411,600 Selling expenses 470,400 122,500 347.900 Administrative expenses 176,400 112,700 63,700 $1.969,800 $1.146.600 $823,200 Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 30% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $196,000 to total salaries of $19,600 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. (a) Your answer is correct. Calculate the break-even point in dollars for 2022. Break-even point $ (b) eTextbook and Media 2352000 Attempts: 1 of 2 used Your answer is partially correct. Calculate the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to O decimal places, e.g. 15% and final answers to 0 decimal places, e.g. 5,275.) Break-even point if unit selling price increases by 30% Break-even point if there is a change in compensation 14 $ $ Break-even point if there is a purchase of new high-tech factory machinery 1646400 Sandhill Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 58,800 units of product: net sales $1,764,000; total costs and expenses $1,969,800; and net loss $205,800. Costs and expenses consisted of the amounts shown below: Cost of goods sold Total $1,323,000 Variable $911,400 Fixed $411,600 Selling expenses 470,400 122,500 347.900 Administrative expenses 176,400 112,700 63,700 $1.969,800 $1.146.600 $823,200 Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 30% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $196,000 to total salaries of $19,600 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. (a) Your answer is correct. Calculate the break-even point in dollars for 2022. Break-even point $ (b) eTextbook and Media 2352000 Attempts: 1 of 2 used Your answer is partially correct. Calculate the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to O decimal places, e.g. 15% and final answers to 0 decimal places, e.g. 5,275.) Break-even point if unit selling price increases by 30% Break-even point if there is a change in compensation 14 $ $ Break-even point if there is a purchase of new high-tech factory machinery 1646400
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