Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Your answer is partially correct. Try again from w 0 00 product s Coronade Inc. had a bad year in 2019. For the first time

image text in transcribed
image text in transcribed
Your answer is partially correct. Try again from w 0 00 product s Coronade Inc. had a bad year in 2019. For the first time to operated $1.560.000; total costs and expenses $1.000.000, and net . The company income statement showed the followers 0.000. Costs and expenses come of the forong Total Variable Cost of goods sold $1,141,200 5633,000 $508,200 Selling expenses 512,800 91.000 421.800 Administrative expenses 145,000 56.000 90.000 $1,800,000 700.000 $1,020,000 Management is considering the following independent alternatives for 2020 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salones totaling 204,000 to total salaries of $44,985 plus a commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and fed cost of goods sold to 50:50. (a) Compute the break-even point in dollars for 2019. (Round u m a ratio decapaces 02512 and finalanswer to decimal places 2,510) Break-even point 2040000 (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...251 and Hinalans places, .g. 2,510.) Break-even point J 1700000 1. Increase selling price e com a man of m y son. In CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN P ERSO N Management is considering the following independent alternatives for 2020 1. Increase unit selling price 25% with no change in costs and expenses 2. Change the compensation of salespersons from fixed annual salaries totaling $204,000 to total sales of $44,985 plus a 5% Common on net sales 3. Purchase new high-tech factory machinery that will change the proportion between variable and feed cost of goods sold to 50:50 (a) Compute the break even point in dollars for 2019. (Med contribution margiratie tot decimal plac 0.25 12 and in answer to decimal places, 2,510) Break-even point 2040000 (b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contri place : 2,570) Break even point 1. Increase selling price 1700000 2. Change compensation 1913300 3. Purchase machinery 1706186 Which course of action do you recommend? Alternative Click if you would like to Show Work for this question Open Show Work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

10th Edition

978-0324300987

Students also viewed these Accounting questions