CALCULATOR FULL SCREEN Brief Exercise 18-04 Cullumber Company accumulates the following data concerning a mixed cost, using miles as the activity level. January February Miles Driven 8,005 7,500 Total Cost $14,170 13,490 March April Miles Driven 8,500 8,200 Total Cost $14,790 14,485 Compute the variable cost per mile using the high-low method (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per mile Compute the fixed cost elements using the high-low method. Fixed costs Problem 18-04A Pharoah 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 selling 595,500 units of product: sales $2,977,500, total costs and expenses $3,076,750, and net loss $99,250. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,528,890 $2,042,565 $486,325 Selling expenses 297,750 109,572 188,178 Administrative expenses 250,110 80,988 169,122 $3,076,750 $2,233,125 $843,625 Management is considering the following independent alternatives for 2021. 1. Increase unit selling price 25% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $178,650 to total salaries of $71,460 plus a 5% commission on sales. Compute the break-even point in dollars for 2020. Break-even points Compute the contribution margin under each of the alternative courses of action 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. Break-even point for alternative 1 Break-even point for alternative 2 Which course of action do you recommend