Please help me with all answers thanku Midlands 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 $1,964,000; and net loss$424,000. Costs and expenses consisted of the following.Cost of goods soldSelling expensesAdministrative expenses1.2.Total$1,299,600513,4003.151,000Variable$773,00093,00058,000Management is considering the following independent alternatives for 2020.Increase unit selling price 25% with no change in costs and expenses.Change the compensation of salespersons from fixed annual salaries totaling $198,000 to total salaries of $38,005 plus a 5%commission on net sales.$1,964,000 $924,000Fixed$526,600420,40093,000$1,040,000Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to50:50.(a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer to 0decimal places, e.g. 2,510) (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer to Odecimal places, e.g. 2,510.)Break-even point(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 O decimal places, eg. 2,510.)1.2$3.Increase selling price $Change compensationPurchase machinery$$Break-even pointWhich course of action do you recommend?

The break even sales are the sales where business earns no profit no loss during the period. The…

Midlands 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 $1,964,000; and net loss $424,000. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses Manager Total Variable $1,299,600 $773,000 513,400 93,000 151,000 58,000 $1,964,000 $924,000 Fixed $526,600 420,400 93,000 $1,040,000

Midlands 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 $1,964,000; and net loss $424,000. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses Manager Total Variable $1,299,600 $773,000 513,400 93,000 151,000 58,000 $1,964,000 $924,000 Fixed $526,600 420,400 93,000 $1,040,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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Current Attempt in Progress Midlands 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 $1.794.800; and net loss $254,800. Costs and expenses consisted of the following Cost of goods sold Selling expenses Administrative expenses 1 2. Total 3. $1.112.800 529,000 Variable $618,000 92,000 153,000 60,000 $1,794,800 $770,000 Fixed $494,800 437,000 92.000 Management is considering the following independent alternatives for 2020, Increase unit selling price 25% with no change in costs and experises. Change the compensation of salespersons from foed annual salaries totaling $201,000 to total salaries of $36,015 plus a 5% commission on net sales $1,024,800 Purchase new high-tech factory machinery that will change the proportion between variable and foxed cost of goods sold to 50:50. (a) Compute the break-even point in…
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