Prentice Manufacturing's sales slumped badly in 2010 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 $2,125,000; total costs and expenses $2,500,000; and net loss $375,000. Costs and expenses consisted of the following: 
Management is considering the following alternative for 2011:
Purchase new automated equipment that will change the proportion between variable and fixed expenses sold to 45% variable and 55% fixed.
Instructions
(a) Compute the break-even point in dollars for 2010.
(b) Compute the break-even point in dollars under the alternative course of action.
Definitions:
Union Membership
The status of being a member of a labor union, an organization that represents the collective interests of workers in negotiations with employers over wages, benefits, and working conditions.
Labor Force
The total number of people who are eligible and able to work, including those currently employed and those seeking employment.
Labor Unions
Organizations that represent workers in negotiations with employers over wages, working conditions, and benefits.
Members
Individuals or entities that are part of a group, organization, or society, typically with certain rights or obligations.
Q5: Direct materials costs and indirect materials costs
Q6: Powers Company had average operating assets of
Q7: Many companies have significantly lowered inventory levels
Q27: Job cost sheets constitute the subsidiary ledger
Q36: In the production cost report, the total<br>A)
Q43: Lester Production is planning to sell 600
Q112: The margin of safety is the difference
Q136: The budget that is often considered to
Q178: A company has total fixed costs of
Q193: At the end of the year, any