Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tanek Corp.s sales slumped bady in 207.Fos $3,070,600, and net loss $118,100. Costs and expenses consisted of the amounts shown 17. For the first time
Tanek Corp.s sales slumped bady in 207.Fos $3,070,600, and net loss $118,100. Costs and expenses consisted of the amounts shown 17. For the first time in its history, it operated at a loss. The company's income statement showed the following selling 590,500 units of product: sales $2,952,500, t below. Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $2,527,340 $1,877,790 $649,550 295,250 108,652 186,598 80,308 167,702 $3,070,600 $2,066,750 $1,003,850 248,010 Management is considering the following independent alternatives for 2018 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $177,150 to total salaries of $70,860 plus a 6% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to O decimal places, e.g. 1,225.) Break-even point (b) Compute the contribution margin under cach of the alternative courses of action. (Round final answer to o decimal places, e.g. 1,225.) Contribution margin for alternative 1 Contribution margin for alternative 2 Compute the break-even point in dollars under each of the alternative courses of action. (Round selling calculations to 0 decimal places, e.g. 20% and also final answer to 0 decimal places, e.g. 1,225.) price per unit to 2 decimal places, e-g. 5.25 and other Break-even point for alternative 1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started