Question: question b (6) Compute the contribution margin ratio under each of the alternative courses of action (Round answers to 2 decimal places, es 21.22.) Contribution

question b
question b (6) Compute the contribution margin ratio under each of the
alternative courses of action (Round answers to 2 decimal places, es 21.22.)

(6) Compute the contribution margin ratio under each of the alternative courses of action (Round answers to 2 decimal places, es 21.22.) Contribution margin ratio for alternative 1 % Contribution margin ratio for alternative 2 % Compute the break-even point in dollars under each of the alternative courses of action $ Break-even point for alternative 1 Break-even point for alternative 2 $ Which course of action do you recommend? Cullumber Corp.'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 585,500 units of product: sales $2.927,500 total costs and expenses $3,036,840, and net loss $109,340 Costs and expenses consisted of the following amounts. Total Variable Fixed $2,498,180 $1.920,440 $577,740 Cost of goods sold Selling expenses Administrative expenses 292,750 107,732 185,018 245,910 79,628 166,282 $3,036,840 $2,107,800 $929,040 Management is considering the following independent alternatives for 2023. 1. 2 Increase unit selling price 20% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual sataries totaling $175,650 to total salaries of $70.260 plus a 5% commission on sales (a) ) . Your answer is correct Compute the break-even point in dollars for 2022 Break even point 3310000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!