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Wildhorse Inc. had a bad year in 2024 . For the first time in its history, it operated at a loss. The companys income statement
Wildhorse Inc. had a bad year in 2024 . For the first time in its history, it operated at a loss. The companys income statement showed the following results from selling 104,000 units of product: net sales $2,600,000, total costs and expenses $2,905,500, and net loss $305,500. Costs and expenses consisted of the following. Management is considering the following independent alternatives for 2025. 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fowed annual salaries totaling $260,000 to total salaries of $52,000 plus a 5%. commission on net sales: 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 5050. (a) Compute the break-even point in sales dollars for 2024, (Round contribution margin rotio to 4 decimal places es. 0.2512 and final answer to 0 decimal places, es, 2.510) Break-even point (b) Compute the break-even point in sales dollars under cach of the alternative courses of action for 2025 . (Round contribution margin ratio to 3 decimal places es. 0.251 and final answers to 0 decimal places, eg. 2,510.) (a) Compute the break-even point in sales dollars for 2024. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer to 0 decimal places, eg. 2,510.) Break-even point (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2025. (Round contribution margin ratio to 3 decimal places es. 0.251 and final answers to 0 decimal places, es. 2,510J Which course of action do you recommend
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