Compute the break-even point|Business
| 1. | Increase unit selling price 24% with no change in costs, expenses, and sales volume. | |
| 2. | Change the compensation of salespersons from fixed annual salaries totaling $166,650 to total salaries of $66,660 plus a 6% commission on sales. |
(a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places, e.g. 1,225.)
| Break-even point |
$
 |
(b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places, e.g. 1,225.)
| 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. (Round selling price per unit to 2 decimal places, e.g. 5.25 and other calculations to 0 decimal places, e.g. 20% and also final answer to 0 decimal places, e.g. 1,225.)
| Break-even point for alternative 1 |
$
|
|
| Break-even point for alternative 2 |
$
|
Which course of action do you recommend?
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