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Increase unit selling price $25\%$ with no change in costs and expenses.

$2.$

Change the compensation of salespersons from fixed annual salaries totaling $$200,000$ to total salaries of $$40,010$ plus a $5\%$ 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 $50$:$50.$

Flag question: Question $1$

Question $1100$ pts

Crane Inc. had a bad year in $2022.$ For the first time in its history, it operated at a loss. The company$$s income statement showed the following results from selling $75,000$ units of product: net sales $$1,500,000$; total costs and expenses $$1,780,200$; and net loss $$280,200.$ Costs and expenses consisted of the following.

Total

Variable

Fixed

Cost of goods sold

$$1,106,000$

$$598,000$

$$508,000$

Selling expenses

$522,200$

$95,000$

$427,200$

Administrative expenses

$152,000$

$57,000$

$95,000$

$$1,780,200$

$$750,000$

$$1,030,200$

Management is considering the following independent alternatives for $2023.$

$1.$

Increase unit selling price $25\%$ with no change in costs and expenses.

$2.$

Change the compensation of salespersons from fixed annual salaries totaling $$200,000$ to total salaries of $$40,010$ plus a $5\%$ 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 $50$:$50.$

$($a$)$ Compute the break$-$even point in dollars for $2022.($Round contribution margin ratio to $2$ decimal places e$.$g$.0\mathrm{.}25$ and final answer to $0$ decimal places, e$.$g$.2,510.)$

Flag question: Question $2$

Question $2100$ pts

Crane Inc. had a bad year in $2022.$ For the first time in its history, it operated at a loss. The company$$s income statement showed the following results from selling $75,000$ units of product: net sales $$1,500,000$; total costs and expenses $$1,780,200$; and net loss $$280,200.$ Costs and expenses consisted of the following.

Total

Variable

Fixed

Cost of goods sold

$$1,106,000$

$$598,000$

$$508,000$

Selling expenses

$522,200$

$95,000$

$427,200$

Administrative expenses

$152,000$

$57,000$

$95,000$

$$1,780,200$

$$750,000$

$$1,030,200$

Compute the break$-$even point in dollars under each of the alternative courses of action for $2023.($Round contribution margin ratio to $3$ decimal places e$.$g$.0\mathrm{.}251$ and final answers to $0$ decimal places, e$.$g$.2,510.)$

Management is considering the following independent alternatives for $2023.$

$1.$

Increase unit selling price $25\%$ with no change in costs and expenses.

$2.$

Change the compensation of salespersons from fixed annual salaries totaling $$200,000$ to total salaries of $$40,010$ plus a $5\%$ 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 $50$:$50.$

Compute the break$-$even point in dollars under each of the alternative courses of action for $2023.($Round contribution margin ratio to $3$ decimal places e$.$g$.0\mathrm{.}251$ and final answers to $0$ decimal places, e$.$g$.2,510.)$

Enter your answer in the following format: $1.$ $x$,$xxx$,$xxx $2.$ $x$,$xxx$,$xxx $3.$ $x$,$xxx$,$xxx

Flag question: Question $3$

Question $3100$ pts

Crane Inc. had a bad year in $2022.$ For the first time in its history, it operated at a loss. The company$$s income statement showed the following results from selling $75,000$ units of product: net sales $$1,500,000$; total costs and expenses $$1,780,200$; and net loss $$280,200.$ Costs and expenses consisted of the following.

Total

Variable

Fixed

Cost of goods sold

$$1,106,000$

$$598,000$

$$508,000$

Selling expenses

$522,200$

$95,000$

$427,200$

Administrative expenses

$152,000$

$57,000$

$95,000$

$$1,780,200$

$$750,000$

$$1,030,200$

Compute the break$-$even point in dollars under each of the alternative courses of action for $2023.($Round contribution margin ratio to $3$ decimal places e$.$g$.0\mathrm{.}251$ and final answers to $0$ decimal places, e$.$g$.2,510.)$

Management is considering the following independent alternatives for $2023.$

$1.$

Increase unit selling price $25\%$ with no change in costs and expenses.

$2.$

Change the compensation of salespersons from fixed annual salaries totaling $$200,000$ to total salaries of $$40,010$ plus a $5\%$ 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 $50$:$50.$

Which alternative do you recommend?

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