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Crare Corp: s sales slumped badly in 2022. For the first time in its history, it operated at a loss. The compary's income statement showed
Crare Corp: s sales slumped badly in 2022. For the first time in its history, it operated at a loss. The compary's income statement showed the following results from selling 585,500 units of product: sales $2.927,500, total costs and expenses $3,024,875. and net loss $97,375. Costsand expenses consisted of the following amounts Management is considering the following independent alternatives for 2023 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume 2. Change the compensation of salespersons from fixed annual salaries totaling $175.650 to total salaries of 570.260 plus a 5%. commision on sales. Compute the contribution margin ratio under each of the alternative courses af action (Renund annweri to 2 decimal phoces ea 2122.) Compute the break-even point in dallars under each of the aternative courses of action. Break-even point for aiternative 1 Break-even point for alternative 2 Which course of action do you recommend
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