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Vaughn inc. had a bad year in 2019. For the first time in its tustory, it operated at a loss. The company' sincome statement ahowed
Vaughn inc. had a bad year in 2019. For the first time in its tustory, it operated at a loss. The company' sincome statement ahowed the following results from selling 79,000 units of product net sales $1,580,000; total costs and expenses $1,829,800; and net loss $249,800. Costs and expenses consisted of the following Management is considering the following independent alternatives for 2020 1. Increase unit selling price 258 with no change in costs and expenses 2. Change the compensation of salesperson from fwed annual salaries totaling $195,000 to total salaries of $39,000 plus a 5% commission on net sales. 3. Pyrchase new Wigh-tech foctorymachinery that will change the proportion between variable and fixed cost of goods sold to 5050 (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to 0 decimal places, e.3, 2,510.) Break-even point (b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to 0 decimal places, e.g. 2.510.) Which course of action do you recommend
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