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Compute the contribution margin under each of the alternative courses of action. % Contribution margin for alternative 1 96 Contribution margin for alternative 2 Compute

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Compute the contribution margin under each of the alternative courses of action. % Contribution margin for alternative 1 96 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? Sunland 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 575,500 units of product: sales $2,877.500, total costs and expenses $2.973.625, and net loss 596,125. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,444,165 287.750 241.710 $2,973,625 Variable $1,973,965 105,892 78.268 $2,158,125 Fixed $470.200 181,858 163,442 $815,500 Management is considering the following independent alternatives for 2021. 1. 2. Increase unit selling price 25% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $172,650 to total salaries of $69.060 plus a 5% commission on sales

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