(a) Compute the break-even point in dollars for 2019. (Round contribution margin nitio to 4 decimal places es 0.2512 and finalwer to Odecimal places, eg 2,510)Break-even point(b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to3 decimal places eg. 0.251 and final answers to O decimal places, eg 2.510)1.$2Increase selling priceChange compensation3. Purchase machinery$$$Break-even pointWhich course of action do you recommend?eTextbook and Media Current Attempt in ProgressMidlands Inc, had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed thefollowing results from selling 77.000 units of product net sales $1.540,000: total costs and expenses $1.794.800; and net loss$254,800. Costs and expenses consisted of the followingCost of goods soldSelling expensesAdministrative expenses12.Total3.$1.112.800529,000Variable$618,00092,000153,00060,000$1,794,800 $770,000Fixed$494,800437,00092.000Management is considering the following independent alternatives for 2020,Increase unit selling price 25% with no change in costs and experises.Change the compensation of salespersons from foed annual salaries totaling $201,000 to total salaries of $36,015 plus a 5%commission on net sales$1,024,800Purchase new high-tech factory machinery that will change the proportion between variable and foxed cost of goods sold to50:50.(a) Compute the break-even point in dollars for 2019. (Round contribution margin rutio to 4 decimal places eg. 0.2512 and final answer to Odecimal places, eg 2.510)Break-even point $

The break-even sales are the sales where the business earns no profit or loss during the period. The…

(a) Compute the break even point in dollars for 2019 (Round contribution margin ratio to 4 decimal places g 0.2512 and final onwerto O decimal places, eg 2,510) Break even point (b) Compute the break even point in dollars under each of the alternative courses of action for 2020 Round contribution margin ratio 3 decimal places eg 0.251 and final answers to O-decimal places, eg 2.510) 1. 2 3. Increase selling price S Change compensation Purchase machinery $ S Break even point Which course of action do you recommend?

(a) Compute the break even point in dollars for 2019 (Round contribution margin ratio to 4 decimal places g 0.2512 and final onwerto O decimal places, eg 2,510) Break even point (b) Compute the break even point in dollars under each of the alternative courses of action for 2020 Round contribution margin ratio 3 decimal places eg 0.251 and final answers to O-decimal places, eg 2.510) 1. 2 3. Increase selling price S Change compensation Purchase machinery $ S Break even point Which course of action do you recommend?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....

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