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View Policies Current Attempt in Progress Crane Corp's sales slumped badly in 2020. For the first time in its history, it operated at a loss.
View Policies Current Attempt in Progress Crane Corp's sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 585,500 units of product: sales $ 2,927,500, total costs and expenses $3,024,875, and net loss $ 97,375. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $ 2,486,215 $2,008,265 $ 477,950 Selling expenses 292,750 107,732 185,018 Administrative expenses 245,910 79,628 166,282 $3,024,875 $ 2.195,625 $ 829,250 Management is considering the following independent alternatives for 2021. 1. Increase unit selling price 25% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $ 175,650 to total salaries of $ 70,260 plus a 5% commission on sales. Compute the break-even point in dollars for 2020. Break-even point $ Compute the break-even point in dollars for 2020. Break-even point $ Compute the contribution margin under each of the alternative courses of action. 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. Break-even point for alternative 1 $ Break-even point for alternative 2 $ Which course of action do you recommend
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