22.4

structions up income statement for 2020 based on management's estimates. (Show column for Pepare a CVP incor ual amounts only.) dat A Compute the break- te the break-even point in (1) units and (2) dollars. the contribution margin ratio and the margin of safety ratio. (Round to nearest full percent.) mine the sales dollars required to earn net income of $180,000. b. (1) 2,700,0 C. CM ratio 3 Compute the contribution Compute break- alternative cour IALO 4) Tanek Corp.'s sales slumped badly in 2020. For the first time in its history, it operated use. The company's income statement showed the following results from selling 500,000 units d product: sales $2,500,000, total costs and expenses $2,600,000, and net loss $100,000. Costs and upenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,140,000 250,000 210,000 $2,600,000 Variable $1,590,000 92,000 68,000 $1,750,000 Fixed $550,000 158,000 142,000 $850,000 Wagement is considering th Increase unit selling prio Change the compensa saries of $60,000 pl onsidering the following independent alternatives for 2021. selling price 20% with no change in costs, expenses, and sales volume. compensation of salespersons from fixed annual salaries totaling $150,000 to total 300,000 plus a 5% commission on sales. horus Come the break Come the break-even as to nearest full per b all break-even point in dollars for 2020. keven point in dollars under each of the alternative courses of action. (Round all "percent.) Which course of action do you recommend? in Chan Store. She is currently Comnute hrel