(a) (a) Compute the break-even point in dollars for 2017.

(b) Compute the contribution margin under each of the alternative courses of action.

(c)Compute the break-even point in dollars under each of the alternative courses of action.

(d) Which course of action do you recommend?

Problem 18-3A Tanek Corp.'s sales slumped badly in 2017. 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 $3,018,600, and net loss $116,100. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,484,540 290,250 243,810 $3,018,600 Variable $1,845,990 106,812 78,948 $2,031,750 Fixed $638,550 183,438 164,862 $986,850 Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $174,150 to total salaries of $69,660 plus a 6% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to o decimal places, e.g. 1,225.) Break-even point & (b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to O decimal places, e.g. 1,225.) Contribution margin for alternative 1 Contribution margin for alternative 2 Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places, e.g. 5.25 and other calculations to 0 decimal places, e.g. 20% and also final answer to o decimal places, e.g. 1,225.)