Can someone explain how theChange the compensation of salespersons from fixed annual salaries totaling $162,150to total salaries of $64,860plus a5% commission on sales. effects the problem?

4/9/2016 Problem 22-3A Problem 223A 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 540,500 units of product: sales $2,702,500, total costs and expenses $2,810,600, and net loss $108,100. Costs and expenses consisted of the amounts shown below. Total Variable Fixed $2,313,340 $1,718,790 $594,550 Selling expenses 270,250 99,452 170,798 Administrative expenses 227,010 73,508 153,502 $2,810,600 $1,891,750 $918,850 Cost of goods sold Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 23% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $162,150 to total salaries of $64,860 plus a 5% commission on sales. (a) Compute the breakeven point in dollars for 2017. (Round final answer to 0 decimal places, e.g. 1,225.) Breakeven point $ (b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places, e.g. 1,225.) Contribution margin for alternative 1 Contribution margin for alternative 2 % % Compute the breakeven 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 0 decimal places, e.g. 1,225.) Breakeven point for alternative 1 Breakeven point for alternative 2 $ $ Which course of action do you recommend? Alternative 1 http://edugen.wileyplus.com/edugen/student/main.uni 1/2 4/9/2016 Problem 22-3A Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER Copyright 20002016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wileyplus.com/edugen/student/main.uni 2/2