Question
Tanek Corp.s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The companys income statement showed the
Tanek Corp.s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The companys income statement showed the following results from selling 585,500 units of product: sales $ 2,927,500, total costs and expenses $ 3,044,600, and net loss $ 117,100. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $ 2,505,940 $ 1,861,890 $ 644,050 Selling expenses 292,750 107,732 185,018 Administrative expenses 245,910 79,628 166,282 $ 3,044,600 $ 2,049,250 $ 995,350 Compute the break-even point in dollars under each of the alternative courses of action Break-even point for alternative 1 $ Break-even point for alternative 2
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