Oriole Corp.s sales slumped badly in For the first time in its history, it operated at a loss. The company's income statement
showed the following results from selling units of product: sales $ total costs and expenses $ and net
loss $ Costs and expenses consisted of the amounts shown below.
Management is considering the following independent alternatives for
Increase unit selling price with no change in costs, expenses, and sales volume.
Change the compensation of salespersons from fixed annual salaries totaling $ to total salaries of $ plus a
commission on sales.
a
Compute the breakeven point in dollars for
Breakeven point $
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b
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