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Cullumber Corp.'s sales slumped badly in 202D. For the first time in its history, it aperated at a loss. The company's income statement showed the
Cullumber Corp.'s sales slumped badly in 202D. For the first time in its history, it aperated 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 Selling expenses Administrative expenses $2,219, 182 1,738,470 480,712 95,772 164,473 70,799 147,822 52,699,042 1,905,030 $793,012 260,250 219,610 Management is considering the following independent alternatives for 2021 1. Increase unit selling price 22% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $156,150 to total salaries of $62,460 plus a 6% commission on sales. 2 Compute the break-even paint in dollars for 2020. Break-even point Compute the contribution margin under each of the alternative courses of action Contribution margin for alternative Contribution margin for alternative 2 Compute the break-even paint in dollars under each of the alternative courses af action Break-even point for alternatlve 1 Break-even point for alternative 2 Which course of action do you recommend? Click if you would like to Show Work for this question Ren Thow work
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