Please do not give solution in image format thanku Sunland Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed thefollowing results from selling 77,000 units of product: net sales $1,540,000; total costs and expenses $1,939,000; and net loss$399,000. Costs and expenses consisted of the following.Cost of goods soldSelling expensesAdministrative expensesTotalVariable Fixed$1,278,800 $778,000511,20090,000$500,80056,000421,200149,00093,000$1,939,000 $924,000 $1,015.000Management is considering the following independent alternatives for 2020.1. Increase unit selling price 20% with no change in costs and expenses. 1.Management is considering the following independent alternatives for 2020.2.3.Break-even point(a) Compute the break-even point in dollars for 2019. (Round contributiog margin ratio to 4 decimal places eg. 0.2512 and final answer to Odecimal places, eg. 2,510)Break-even point1.Increase unit selling price 20% with no change in costs and expenses.Change the compensation of salespersons from fixed annual salaries totaling $198,000 to total salaries of $45,015 plus a 5%commission on net sales.2.Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to50:50.3.$1,939,000 $924,000$(b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to3 decimal places eg. 0.251 and final answers to 0 decimal places, e.g. 2,510)Increase selling priceChange compensationPurchase machinery$1,015.000Break-even pointS$Which course of action do you recommend? Alternative 11

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Sunland Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 77,000 units of product: net sales $1,540,000; total costs and expenses $1,939,000; and net loss $399,000. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses Total Increa $1,278,800 511,200 149,000 $1,939,000 Variable $778,000 90,000 56,000 Fixed $500,800 421,200 93,000 $924,000 $1,015,000 Management is considering the following independent alternatives for 2020. ing price 20% with no change in costs and expenses.

Sunland Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 77,000 units of product: net sales $1,540,000; total costs and expenses $1,939,000; and net loss $399,000. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses Total Increa $1,278,800 511,200 149,000 $1,939,000 Variable $778,000 90,000 56,000 Fixed $500,800 421,200 93,000 $924,000 $1,015,000 Management is considering the following independent alternatives for 2020. ing price 20% with no change in costs and expenses.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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