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Cullumber Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed

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Cullumber Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 84,800 units of product: net sales $2,120,000; total costs and expenses $2,369,100; and net loss $249,100. Costs and expenses consisted of the following. Total Vari Cost of goods sold $1,662,080 $1,11 Selling expenses 548,020 9 Administrative expenses 159,000 6 $2,369,100 $1,27 Management is considering the following independent alternatives for 2022. 1. Increase unit selling price 25% 2. Change the compensation of sa 3. Purchase new high-tech factory (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to O decimal places, e.g. 2,510.) Break-even point $ (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2022. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to O decimal places, e.g. 2,510.) Break-even p 1. Increase selling price 2. Change compensation $ 3. Purchase machinery $ Which course of action do you recommend? Cullumber Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 84,800 units of product: net sales $2,120,000; total costs and expenses $2,369,100; and net loss $249,100. Costs and expenses consisted of the following. Total Vari Cost of goods sold $1,662,080 $1,11 Selling expenses 548,020 9 Administrative expenses 159,000 6 $2,369,100 $1,27 Management is considering the following independent alternatives for 2022. 1. Increase unit selling price 25% 2. Change the compensation of sa 3. Purchase new high-tech factory (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to O decimal places, e.g. 2,510.) Break-even point $ (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2022. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to O decimal places, e.g. 2,510.) Break-even p 1. Increase selling price 2. Change compensation $ 3. Purchase machinery $ Which course of action do you recommend

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