Crane Manufacturing's sales slumped badly in 2027 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500,000 units of product: net sales $2,135,000; total costs and expenses $2,510,480; and net loss $375,480. Costs and expenses consisted of the following:
Total Variable Fixed
Cost of goods sold $2,002,480 $1,301,000 $701,480
Selling expenses 204,000 52,000 152,000
Administrative expenses 304,000 152,000 152,000
$2,510,480 $1,505,000 $1,005,480
Management is considering the following alternative for 2028:
Purchase new automated equipment that will change the proportion between variable and fixed expenses to 45% variable and
Your answer is incorrect.
Compute the break-even sales dollars under the alternative course of action. (Round per unit value to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.)
Break-even sales dollars $
