Cullumber Manufacturing's sales slumped badly in 2022. For the first time in its history, it...
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Cullumber 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 63,600 units of product: net sales $1,908,000; total costs and expenses $2,130,600; and net loss $222,600. 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 25% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $212,000 to total salaries of $21,200 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. Your answer is incorrect. Calculate the break-even point in dollars for 2022
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Cullumber 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 63,600 units of product: net sales $1,908,000; total costs and expenses $2,130,600; and net loss $222,600. 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 25% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $212,000 to total salaries of $21,200 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. Your answer is incorrect. Calculate the break-even point in dollars for 2022 