Please help me Pharoah Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's incomestatement showed the following results from selling 89,600 units of product: net sales $2,240,000; total costsand expenses $2,503,200; and net loss $263,200. Costs and expenses consisted of the following.Cost of goods soldSelling expensesAdministrative expensesManagement is considering the following independent alternatives for 2022.1.2.3.Increase unit selling price 25% with no change in costs and expenses.Change the compensation of salespersons from fixed annual salaries totaling $224,000 to total salariesof $44,800 plus a 5% commission on net sales.(a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimalplaces e.g. 0.2512 and final answer to 0 decimal places, e.g. 2,510.)Break-even point $1.Purchase new high-tech factory machinery that will change the proportion between variable and fixedcost of goods sold to 50:50.2.TotalVariableFixed$1,756,160$1,176,000$580,160579,040103,040476,000168,00064,960103,040$2,503,200 $1,344,000 $1,159.200(b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2022.(Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to 0 decimal places,e.g. 2,510.)Increase selling priceChange compensationPurchase machinery$$Break-even point

Break even refers to the situation when there is no loss or no profit or at this point the total…

Pharoah Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 89,600 units of product: net sales $2,240,000; total costs and expenses $2,503,200; and net loss $263,200. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses Total Variable Fixed $1,756,160 $1,176,000 $580.160 579,040 103,040 476,000 168,000 64,960 103,040 $2,503,200 $1,344,000 $1.159,200 Management is considering the following independent alternatives for 2022.

Pharoah Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 89,600 units of product: net sales $2,240,000; total costs and expenses $2,503,200; and net loss $263,200. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses Total Variable Fixed $1,756,160 $1,176,000 $580.160 579,040 103,040 476,000 168,000 64,960 103,040 $2,503,200 $1,344,000 $1.159,200 Management is considering the following independent alternatives for 2022.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 1CP

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