3.5/5 Question 5 of 5 View Policies Show Attempt History Current Attempt in Progress Wildhorse Corps sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 520,500 units of product sales $2,602,500, total costs and expenses $2,699,520, and net loss $97,020. Costs and expenses consisted of the amounts shown below. Total Variable Fixed $2220,660 $1,707,240 $513,420 Cost of goods sold Selling expenses Administrative expenses 260,250 95.772 164,478 218,610 70.788 147.822 $2,699.520 $1,873,800 $825,720 Management is considering the following independent alternatives for 2021. 1. Increase unlt selling price 20% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $156,150 to total salaries of $62,460 plus a 4% commission on sales 2 Your answer is partially correct. Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 40 % Contribution margin for alternative 2 22 % Compute the break-even point in dollars under each of the alternative courses of action. Break-even point for alternative 1 $ 26064300 Break-even point for alternative 2 $ 3327409.09 Which course of action do you recommend? Alternative 1 : e Textbook and Media Save for Later Attempts: 2 of 5 used Submit Answer 342 1 a tv 4p @N