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 the following independent alternatives for 2021. Increase unit selling price 25% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $175,650 to total salaries of $70,260 plus a 5% commission on sales. x Your answer is incorrect. Try again. Compute the break-even point in dollars for 2020. 3317833 Break-even point Show all X Lil Herb – Gangway.mp3 1:25 PM S Lil Bibby You Ain'….mp3 de la 2/13/2020 Bibby MOB Fre…m… x Your answer is incorrect. Try again. VERSION BACK 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? Click if you would like to Show Work for this question: Open Show Work! Lil Bibby MOB Fre….m… Lil Bibby You Ain.mp3 Lil Herb – Gangway mo ^ 125 PM 2/12/201703
Given that Anna and Julian are both keen divers and that Julian enjoys eating cake, the choice of venue for the holiday is easily made. When Julian phones to book the holiday, he speaks to Sandra who runs the resort. Julian asks Sandra “so how’s the diving?” and Sandra replies “It’s always brilliant here.” Julian also mentions that he enjoys cake and comments that he is really looking forward to eating lots of them when he gets there. Sandra says “the food here is really exceptional, I am sure you will love it.” As it turns out, the diving isn’t really that good. Tropical storms and an algae bloom have meant that there is very low visibility and the easily accessible parts of the reef have been damaged. Sandra also failed to mention that the chef who had prepared all the cakes used in the promotional pictures had left the Island and had been replaced by a Two-Hat Pakistani chef, who specialises in Indian food. When Julian and Anna arrive at the Island the next week, they check in and are shown to their room. There is a large sign on the back of the door in their room which states that “Visitors are advised that Bliss Island takes no responsibility whatsoever for any items left in rooms – including actions in contract law or tort. All items left in the room are done so at the visitor’s own risk
March 17, 2015
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