Cullumber 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 520,500 units of product: sales $2,602,500, total costs and expenses $2,698,042, and net loss $95,542. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,219,182 $1,738,470 $480,712 Selling expenses 260,250 95,772 164,478 Administrative expenses 218,610 70,788 147,822 $2,698,042 $1,905,030 $793,012 Management is considering the following independent alternatives for 2021. 1. Increase unit selling price 22% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $156,150 to total salaries of $62,460 plus a 6% commission on sales. (b) Compute the contribution margin under each of the alternative courses of action. 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? . e Textbook and Media Save for Later Attempts: 0 of 5 used Submit