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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

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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. Management is considering the following independent alternatives for 2021. 1. Increase unit sclling 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. (a) Compute the break-even point in dollars for 2020. Compute the break-even point in dollars for 2020 . Break-even point eTextbook and Media (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

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