Crane Manufacturing$$s sales decreased significantly in $2021$ due to increased online purchasing. The company$$s income statement showed the following results from selling $410,000$ units of product: Net sales, $$1,722,000$; total costs and expenses, $$2,502,000$; and net loss of $$780,000.$ Costs and expenses consisted of the following:

Total

Variable

Fixed

Cost of goods sold

$$1,476,000$ $$831,000$ $$645,000$

Selling expenses

$556,00024,000532,000$

Administrative expenses

$470,00047,000423,000$

$$2,502,000$ $$902,000$ $$1,600,000$

Management is considering the following alternative for $2022$:

Purchase new automated equipment that will change the proportion between variable and fixed costs to $21\%$ variable and $79\%$ fixed.

Caalculate Break$-$even sales dollars under the alternative course of action for $2022.($Round per unit value to $2$ decimal places, e$.$g$.52\mathrm{.}75$ and final answer to $0$ decimal places, e$.$g$.5,275.)$ 

Answer rating: 100% (QA)

To calculate the breakeven sales dollars under the alternative course of action for 2022 ... View the full answer