wiley plus assignment 655288

Problem 6 1A Fredonia Inc. had a bad year in 2013. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 79,100 units of product: Net sales $1,542,450; total costs and expenses $1,750,700; and net loss $208,250. Costs and expenses consisted of the following. ??Total??Variable??Fixed??Cost of goods sold??$1,197,800??$776,100??$421,700??Selling expenses??427,300??79,600??347,700??Administrative expenses??125,600??53,800??71,800????$1,750,700??$909,500??$841,200???Management is considering the following independent alternatives for 2014. 1.??Increase unit selling price 22% with no change in costs and expenses.??2.??Change the compensation of salespersons from fixed annual salaries totaling $200,000 to total salaries of $36,100 plus a 5% commission on net sales.??3.??Purchase new high tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50.???(a) Compute the break even point in dollars for 2014. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answers to 0 decimal places, e.g. 2,510.) Break even point??$???(b) Compute the break even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answers to 0 decimal places, e.g. 2,510.) ????Break even point??1.??Increase selling price??$??2.??Change compensation??$??3.??Purchase machinery??$???Which course of action do you recommend?  Exercise 7 2 (Part Level Submission) Gruden Company produces golf discs which it normally sells to retailers for $6.90 each. The cost of manufacturing 20,700 golf discs is: Materials??$9,729???Labor??30,636???Variable overhead??22,149???Fixed overhead??40,572???Total??$103,086?????Gruden also incurs 8% sales commission ($0.55) on each disc sold.??   McGee Corporation offers Gruden $5 per disc for 4,700 discs. McGee would sell the discs under its own brand…