Problem 18-04A Crane 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 $3,024,875, and net loss $97,375. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,486,215 $2,008,265 $477,950 Selling expenses 292,750 107,732185,018 Administrative expenses 245,910 79,628 166,282 $3,024,875 $2,195,625 $829,250 Management is considering the following independent alternatives for 2021. Increase unit selling price 25% 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 5% commission on sales. x Your answer is incorrect. Try again. Compute the break-even point in dollars for 2020. 3317833 Break-even point Show all X Lil Herb – Gangway.mp3 1:25 PM S Lil Bibby You Ain’….mp3 de la 2/13/2020 Bibby MOB Fre…m… x Your answer is incorrect. Try again. VERSION BACK 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. Break-even point for alternative 1 Break-even point for alternative 2 Which course of action do you recommend? Click if you would like to Show Work for this question: Open Show Work! Lil Bibby MOB Fre….m… Lil Bibby You Ain.mp3 Lil Herb – Gangway mo ^ 125 PM 2/12/201703
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