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. Cost of goods sold Selling expenses Administrative expenses Total $2.497,340 292,750 245.910 $3,036,000 Variable $1.920,440 107,732 79,628 $2,107,800 Fixed $576,900 185,018 166,282 $928,200 Management is considering the following independent alternatives for 2021. 1. 2. Increase unit selling price 20% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual 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 $ 3315000 Your answer is partially correct. Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 ,40 % Contribution margin for alternative 2 24 % Compute the break-even point in dollars under each of the alternative courses of action $ 2320500 Break-even point for alternative 1 Break-even point for alternative 2 $ 3423375 Which course of action do you recommend? Alternative 1 : nTouth and Media Assistance Us