Please help me to solve this question (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places e.g. 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 e.g. 0.251 and final answers to 0 decimal places, e.g. 2,510.)1.$2.Increase selling price $Change compensation3. Purchase machinery$$Break-even pointWhich course of action do you recommend? 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 75,000 units of product: net sales $2,250,000; total costs and expenses $2,374,920; and net loss$124.920. Costs and expenses consisted of the following.Cost of goods soldSelling expensesAdministrative expenses1.2.TotalVariable$1,692,500 $1,195,0003.532,420150,000$2,374,92095,00060,000$1,350,000Fixed$497,500437,420Management is considering the following independent alternatives for 2020.90,000$1,024,920Increase unit selling price 25% with no change in costs and expenses.Change the compensation of salespersons from fixed annual salaries totaling $196,000 to total salaries of $41,005 plus a 5%commission on net sales.Purchase 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 e.g. 0.2512 and final answer to 0decimal places, e.g. 2,510.)

Name: Please help me to solve this question (a) Compute the break-even point
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Please help me to solve this question (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to Odecimal places, e.g. 2,510.)Break-even point(b) Compute the break-even p