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Wildhorse Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the
Wildhorse Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 78,000 units of product: net sales $2,340,000; total costs and expenses $2,613,000; and net loss $273,000. Costs and expenses consisted of the amounts shown below: Cost of goods sold Selling expenses Administrative expenses Total $1,755,000 624,000 234,000 Variable $1,209,000 162,500 149,500 $2,613,000 $1,521,000 Fixed $546,000 461,500 84,500 $1,092,000 Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 30% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $260,000 to total salaries of $26,000 plus a 10% 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 50:50. Que Accou Viev ACCOL Que Accou Que Accou Wildhorse Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 78,000 units of product: net sales $2.340,000; total costs and expenses $2,613,000; and net loss $273,000. Costs and expenses consisted of the amounts shown below: Management is considering the following independent alternatives for 2023 : 1. Increase the unit selling price by 30x with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from foxed annuat salaries totalling $260,000 to total salaries of $26,000 plus a 10% 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 50:50. Wildhorse Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 78,000 units of product: net sales $2.340,000; total costs and expenses $2,613,000; and net loss $273,000. Costs and expenses consisted of the amounts shown below: Management is considering the following independent alternatives for 2023 : 1. Increase the unit selling price by 30x with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from foxed annuat salaries totalling $260,000 to total salaries of $26,000 plus a 10% 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 50:50
Wildhorse Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 78,000 units of product: net sales $2,340,000; total costs and expenses $2,613,000; and net loss $273,000. Costs and expenses consisted of the amounts shown below: Cost of goods sold Selling expenses Administrative expenses Total $1,755,000 624,000 234,000 Variable $1,209,000 162,500 149,500 $2,613,000 $1,521,000 Fixed $546,000 461,500 84,500 $1,092,000 Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 30% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $260,000 to total salaries of $26,000 plus a 10% 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 50:50. Que Accou Viev ACCOL Que Accou Que Accou
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