Question: Break even point for alternative 1 is? Break even point for alternative two is? Problem 18-4A a-b (Part Level Submission) (Video) Carla Vista Corp.'s sales
Break even point for alternative 1 is?
Break even point for alternative two is?
Problem 18-4A a-b (Part Level Submission) (Video) Carla Vista Corp.'s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 585,500 units of product: sales $2,927,500, total costs and expenses $3,036,000, and net loss $108,500. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,497,340 292,750 245,910 $3,036,000 Variable $1,920,440 107,732 79,626 $2,107,800 Fixed $576,900 185,018 166,282 $928,200 Management is considering the following independent alternatives for 2021. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $175,650 to total salaries of $70,260 plus a 4% commission on sales. () Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 Contribution margin for alternative 2 Compute the break-even point in dollars under each of the alternative courses of action
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