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Boom Corp's sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the

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Boom Corp's 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 min 500,500 units of product sales 12,502,500, total costs and expenses $2,615,550, and net lous $113,050. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,155,090 $1,491,490 5663,600 Selling expenses 250,250 92,092 158,150 Administrative expenses 210,210 68,068 142, 142 $2,615,550 $1,651,650 $963,900 Management is considering the following independent alternatives for 2021 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from foved annual salaries totaling $150,150 to total stories of $60,060 plus a commission on sale Compute the break-even point in dollars for 2020. Break-even point Compute the contribution margin under each of the alternative of action Contribution margin for alternative 1 Contribution margin for alternative 2 Compute the break-even point in dollars under each of the atemative courses of action Break-even point for alternative 1 Break-even point for alternative 2 CALCULATOR PRINTER VERSION Management is considering the following independent alternatives for 2021. 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 $150,150 to total salaries of $60,060 plus a 6% commission on sales. Compute the break-even point in dollars for 2020. Break-even point Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative Contribution margin for alternative 2 Compute the break-even point in dollars under each of the alternative courses of action Break-even point for alternative 1 Break-even point for alternative 2 Which course of action do you recommend? Click if you would like to show Work for this question: Open Show Work

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