thank you before hand for whoever is considering this. i thank you alot.

heres the hints for the requirements. i just cant figure it out

1. As you look at item #1, prepare a break-even analysis for the three different scenarios, pay the old commission rate of 15%, pay the new rate of 20%, or go in-house and pay 7.5%, a couple of things should occur to you:

a. The budgeted information for next year is based on the 15% assumption and that the information is given in the traditional or absorption income statement formula. Since what you essentially are doing here is an aspect of CVP (heard that before?), you will need to look closely at the behaviors of costs and group them accordingly to help you with the analysis. Also, because the scenarios change, from one commission base to another, you will need to pay close attention to the way in which some cost behaviors and amounts change from scenario to scenario.

b. Now the calculation for the breakeven point does not change from what we learned earlier in the class (I again would recommend you use the short formula that I showed you in class), so your job is to merely get the right numbers plugged into the formula and go from there.

Hint: - the costs that you need for the calculation are the same for the 15% and 20% rate and all of the breakeven points are in a range between 11 million and 15 million dollars.

2. Look at item #2, Determine the volume of sales that would be required to generate the same net income as contained in the budgeted income statement for next year (15% level). Now, the first thing we will be looking at is the income before taxes number, that is what we our shooting for. The second thing is, does this not in a way represent the concept that we immediately covered in class after doing break-even? And did we not conclude that we could take our break-even formula and merely tweak it to get the desired number?

So, as you attempt to do this calculation, it should become apparent that you need a percentage from item #1 in order to solve this item.

Hint: - One way to check yourself on this is once you have the number, which will be a $ amount, is to go back and drop this into a variable income statement formula, using the costs associated with this scenario, and you should end up with the correct income number.

The desired volume of sales that you are looking for will obviously be greater that those in the 15% scenario.

1. As you look at item #1, prepare a break-even analysis for the three different scenarios, pay the old commission rate of 15%, pay the new rate of 20%, or go in-house and pay 7.5%, a couple of things should occur to you: a. The budgeted information for next year is based on the 15% assumption and that the information is given in the traditional or ½absorption½ income statement formula. Since what you essentially are doing here is an aspect of CVP (heard that before?), you will need to look closely at the behaviors of costs and group them accordingly to help you with the analysis. Also, because the scenarios change, from one commission base to another, you will need to pay close attention to the way in which some cost behaviors and amounts change from scenario to scenario.b. Now the calculation for the breakeven point does not change from what we learned earlier in the class (I again would recommend you use the short formula that I showed you in class), so your job is to merely get the right numbers plugged into the formula and go from there.Hint: - the costs that you need for the calculation are the same for the 15% and 20% rate and all of the breakeven points are in a range between 11 million and 15 million dollars.2. Look at item #2, Determine the volume of sales that would be required to generate the same net income as contained in the budgeted income statement for next year (15% level). Now, the first thing we will be looking at is the income before taxes number, that is what we our shooting for. The second thing is, does this not in a way represent the concept that we immediately covered in class after doing break-even? And did we not conclude that we could take our break-even formula and merely tweak it to get the desired number? So, as you attempt to do this calculation, it should become apparent that you need a percentage from item #1 in order to solve this item. Hint: - One way to check yourself on this is once you have the number, which will be a $ amount, is to go back and drop this into a variable income statement formula, using the costs associated with this scenario, and you should end up with the correct income number.The desired volume of sales that you are looking for will obviously be greater that those in the 15% scenario