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Carla Vista 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

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Carla Vista 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 585,500 units of product: sales $2,927,500, total costs and expenses $3,036,000, and net loss $108,500. Costs and expenses consisted of the amounts shown below. 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 annval salaries totaling $175,650 to total salaries of $70,260 plus a 4% 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. (Round contribution margin rotio to 0 decimal places, es. 50\%) 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

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