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Compute the break-even point in sales dollars for 2022. Break-even point $ (b) eTextbook and Media Your answer is partially correct. Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 Contribution margin for alternative 2 3145000 Break-even point for alternative 1 Break-even point for alternative 2 Compute the break-even point in sales dollars under each of the alternative courses of action. S 40 $ 20 % % 1965625 3431250 Attempts: 1 of 3 used

Compute the break-even point in sales dollars for 2022. Break-even point $ (b) eTextbook and Media Your answer is partially correct. Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 Contribution margin for alternative 2 3145000 Break-even point for alternative 1 Break-even point for alternative 2 Compute the break-even point in sales dollars under each of the alternative courses of action. S 40 $ 20 % % 1965625 3431250 Attempts: 1 of 3 used

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cullumber Corp'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 555,500 units of product: sales $2,777,500, total costs and expenses $2,869,375, and net loss $91,875. Costs and expenses consisted of the following amounts. Cost of goods sold Selling expenses Administrative expenses Total $2,358,315 277,750 2. 233,310 $2,869,375 Variable $1,905,365 102.212 75,548 $2,083,125 Fixed $452,950 175,538 157.762 $786,250 Management is considering the following independent alternatives for 2023. 1. Increase the unit selling price 25% with no change in total costs, total expenses, and sales volume. Change the compensation of sales personnel from fixed annual salaries totaling $166,650 to total salaries of $66,660 plus a 5% commission on sales. All other total costs, total expenses, and total sales remain unchanged.
Transcribed Image Text:Cullumber Corp'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 555,500 units of product: sales $2,777,500, total costs and expenses $2,869,375, and net loss $91,875. Costs and expenses consisted of the following amounts. Cost of goods sold Selling expenses Administrative expenses Total $2,358,315 277,750 2. 233,310 $2,869,375 Variable $1,905,365 102.212 75,548 $2,083,125 Fixed $452,950 175,538 157.762 $786,250 Management is considering the following independent alternatives for 2023. 1. Increase the unit selling price 25% with no change in total costs, total expenses, and sales volume. Change the compensation of sales personnel from fixed annual salaries totaling $166,650 to total salaries of $66,660 plus a 5% commission on sales. All other total costs, total expenses, and total sales remain unchanged.
Compute the break-even point in sales dollars for 2022. (b) Break-even point $ eTextbook and Medial Your answer is partially correct. Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 Contribution margin for alternative 2 3145000 Break-even point for alternative 1 Break-even point for alternative 2 Compute the break-even point in sales dollars under each of the alternative courses of action. $ 40 % $ 20 % 1965625 3431250 Attempts: 1 of 3 used
Transcribed Image Text:Compute the break-even point in sales dollars for 2022. (b) Break-even point $ eTextbook and Medial Your answer is partially correct. Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 Contribution margin for alternative 2 3145000 Break-even point for alternative 1 Break-even point for alternative 2 Compute the break-even point in sales dollars under each of the alternative courses of action. $ 40 % $ 20 % 1965625 3431250 Attempts: 1 of 3 used
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