Sunland 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 535,500 units of product: sales $2,677,500, total costs and experises $2,777,460, and net loss $99,960. Costs and expenses consisted of the following amounts. Total Variable Fixed Cost of goods sold $2,284,800 $1.756,440 $528,360 Selling expenses 267,750 98,532 169,218 Administrative expenses 224,910 72,828 152,082 $2,777,460 $1,927,800 $849,660 Management is considering the following independent alternatives for 2023. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from foxed annual salaries totaling $160,650 to total salaries of $64,260 plus a 5% commission on sales. (a) Compute the break-even point in dollars for 2022. Break even point $
Sunland 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 535,500 units of product: sales $2,677,500, total costs and experises $2,777,460, and net loss $99,960. Costs and expenses consisted of the following amounts. Total Variable Fixed Cost of goods sold $2,284,800 $1.756,440 $528,360 Selling expenses 267,750 98,532 169,218 Administrative expenses 224,910 72,828 152,082 $2,777,460 $1,927,800 $849,660 Management is considering the following independent alternatives for 2023. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from foxed annual salaries totaling $160,650 to total salaries of $64,260 plus a 5% commission on sales. (a) Compute the break-even point in dollars for 2022. Break even point $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
am. 116.
Transcribed Image Text:Sunland 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 535,500 units of product: sales $2,677,500, total costs and experises $2,777,460, and net
loss $99,960. Costs and expenses consisted of the following amounts.
Total
Variable
Fixed
Cost of goods sold
$2,284,800
$1.756,440 $528,360
Selling expenses
267,750
98,532
169,218
Administrative expenses
224,910
72,828
152,082
$2,777,460
$1,927,800 $849,660
Management is considering the following independent alternatives for 2023.
1.
Increase unit selling price 20% with no change in costs, expenses, and sales volume.
2.
Change the compensation of salespersons from foxed annual salaries totaling $160,650 to total salaries of $64,260 plus a 5%
commission on sales.
(a)
Compute the break-even point in dollars for 2022.
Break even point
$
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