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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
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 560,500 units of product: sales $2,802,500, total costs and expenses $2,907,360, and net loss $104,860. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,391,700 $1,838,440 $553,260 Selling expenses 280,250 103,132 177,118 Administrative expenses 235,410 76,228 159,182 $2,907,360 $2,017,800 $889,560 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 $168,150 to total salaries of $67,260 plus a 4% 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
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