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59 Carla Vista Corp's sales slumped badly in 2025. For the first time in its history, it operated at a loss. The company's income

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59 Carla Vista Corp's sales slumped badly in 2025. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 580,500 units of product: sales $2,902,500, total costs and expenses $3,010,860, and net loss $108,360. Costs and expenses consisted of the following amounts. Total Variable Fixed Cost of goods sold $2,476,800 $1,904,040 $572,760 Selling expenses Administrative expenses 290,250 243,810 $3.010.860 106,812 183,4381 78.948 164,862 $2.089,800 $921,060 Management is considering the following independent alternatives for 2026. 1 2. Increase the unit selling price 20% with no change in total costs, total expenses, and sales volume. Change the compensation of sales personnel from foxed annual salaries totaling $174,150 to total salaries of $69,660 plus a 4% commission on sales. All other total costs, total expenses, and total sales remain unchanged.

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