ZuoTi.Pro
Question

Ivanhoe Corps sales slumped badly in 2020. For the first time in its history, it operated at a loss. The companys income statement showed the following results from selling 515,500 units of product: sales $2,577,500, total costs and expenses$2,673,960, and net loss $96,460. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,199,700 $1,690,840 $508,860 257,750 94,852 162,898 Administrative expenses 216,510 70,108 146,402 2,673,960 $1,855,800 $818,160 Selling expenses Management is considering the following independent alternatives for 2021. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $ 154,650 to total salaries of $ 61,860 plus a 4% commission on sales. 2. Your answer is correct Compute the break-even point in dollars for 2020. Break-even point 2922000 Attempts: 1 of 4 used

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? Attempts:0 of 4 used Check Answer

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Hi

Let me know in case you face any issue:

Answers are highlighted in yellow: Solution: b) Particulars Sales Revenue (515500)[(2577500/5155007120%) Less: Variable cost Contribution Margin for Alternative 1 Contribution Margin for Alternative 1 (1237200/309300) Amount 3093000 1855800 1237200 40% (given Particulars Sales Revenue Less: Variable cost (1855800)+(2577500*4%) Contribution Margin for Alternative 2 Contribution Margin for Alternative 2 (618600/2577500) Amount 2577500 1958900 618600 24% Break Even point Fixed cost/ Contribution margin ratio Break even point for Altr. 1 (818160)/40% $ 2045400 Break even point for Altr. 2 (818160-154650+61860)/24% 3022375 Alternative1 Because of low break even point and higher contribution marign. Which will result in a profit as net income

0 1
Add a comment
Know the answer?
Add Answer to:
Ivanhoe Corp's sales slumped badly in 2020. For the first time in its history, it operated...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Oriole Corp.'s sales slumped badly in 2020. For the first time in its history, it operated...

    Oriole 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 555,500 units of product: sales $2,777,500, total costs and expenses $2,869,875, and net loss $92,375. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,358,815 277,750 233,310 $2,869,875 Variable $1,905,365 102,212 75,548 $2,083,125 Fixed $453,450 175,538 157,762 $786,750 Management is considering the...

  • Crane Corp.’s sales slumped badly in 2020. For the first time in its history, it operated...

    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 590,500 units of product: sales $2,952,500, total costs and expenses $3,050,875, and net loss $98,375. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,507,615 $2,025,415 $482,200 Selling expenses 295,250 108,652 186,598 Administrative expenses 248,010 80,308 167,702 $3,050,875 $2,214,375 $836,500 Management is considering the...

  • Problem 18-04A Crane Corp.'s sales slumped badly in 2020. For the first time in its history,...

    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 590,500 units of product: sales $2,952,500, total costs and expenses $3,050,875, and net loss $98,375. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,507,615 295,250 248,010 $3,050,875 Variable $2,025,415 108,652 80,308 $2,214,375 Fixed $482,200 186,598 167,702 $836,500 Management is...

  • Blossom Corp's sales slumped badly in 2020. For the first time in its history, it operated...

    Blossom 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 575,500 units of product: sales $2,877,500, total costs and expenses $2,984,880, and net loss $107,380. Costs and expenses consisted of the amounts shown below Cost of goods sold Selling expenses Administrative expenses Total $2,455,420 287,750 241,710 $2,984,680 Variable $1,887,640 105,892 78,268 $2,071,800 Fixed $567,780 181,858 163,442 $913,080 • Management is considering...

  • Problem 18-04A Oriole Corp.'s sales slumped badly in 2020. For the first time in its history,...

    Problem 18-04A Oriole 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 540,500 units of product: sales $2,702,500, total costs and expenses $2,803,440, and net loss $100,940. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,306,180 270,250 227,010 $2,803,440 Variable $1,772,840 99,452 73,508 Fixed $533,340 170,798 153,502 $857,640 $1,945,800 Management is...

  • wings from sing Total , 500 Piros Corp's sales slumped badly in 2020. For the first...

    wings from sing Total , 500 Piros Corp's sales slumped badly in 2020. For the first time s erv erted The content whowed the 12,977.500, total costs and expenses 3,076.759, and to 1.250. Costs and expenses consisted of the amounts shown below Variable Fixed Cost of goods sold 12.528.90 $2.042.565 486,125 Sering expenses 297,750 109,572 188,178 Administrative expenses 250,110 0.988 169.122 ,076,702,233,125 5845625 ofertas Management is considering the following independent alternatives for 2021 2. Change the compensation of salespersons from...

  • Problem 5-4A (Video) Crane Corps sales slumped badly in 2020. For the first time in its...

    Problem 5-4A (Video) Crane Corps 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 505,500 units of product: sales $2,527,500, total costs and expenses $2.622.000, and net loss 594,500. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,156,940 252,750 212,310 $2,622,000 Variable $1,658,040 93,012 68,748 $1,819,800 Fixed $498,900 159,738 143,562 $802,200 Management...

  • Tanek Corp.’s sales slumped badly in 2017. For the first time in its history, it operated...

    Tanek Corp.’s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 505,500 units of product: sales $2,527,500, total costs and expenses $2,628,600, and net loss $101,100. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,163,540 $1,607,490 $556,050 Selling expenses 252,750 93,012 159,738 Administrative expenses 212,310 68,748 143,562 $2,628,600 $1,769,250 $859,350 Management is considering the...

  • Problem 18-04A Crane Corp.'s sales slumped badly in 2020. For the first time in its history,...

    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...

  • Tanek Corp.’s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company’s incom...

    Tanek Corp.’s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 540,500 units of product: sales $2,702,500, total costs and expenses $2,810,600, and net loss $108,100. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,313,340 $1,718,790 $594,550 Selling expenses 270,250 99,452 170,798 Administrative expenses 227,010 73,508 153,502 $2,810,600 $1,891,750 $918,850 Management is considering the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT