Accounting Assignment Compute the break-even point i

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For the fist time in its history, it operated at a loss. The company's income statement showed the following results from selling 
500,000 units of product: sales $2,500,000 , total costs and expenses $2,600,000, and net loss $100,000. Costs and expenses consisted of the amounts shown below:
TotalVariableFixed
Costs of goods sold$2,140,000 $1,590,000 $550,000 
Selling expenses250,00092,000158,000
Adminstrative   expenses210,00068,000142,000
$2,600,000 $1,750,000 850,000
Management is considering the following independent alternatives for 2018
1. Increase selling price 20% with no change in costs, expenses, and sales volume .
2. Change the compensation of salesperson from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales. 
Instructions
(a) Compute the break-even point in dollars for 2017.

(b) Compute the break-even point dollars under each of the alternatives courses of action, (Round all ratios to nearest full percent). Which course of action do you recommend?

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    Solution Accounting Assignment Compute the break-even point
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