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Current Attempt in Progress Ivanhoe Corp.'s sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's
Current Attempt in Progress Ivanhoe Corp.'s sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 540,500 units of product: sales $2,702,500, total costs and expenses $2,802,600, and net loss $100,100. Costs and expenses consisted of the following amounts. Management is considering the following independent alternatives for 2023. 1. Increase the unit selling price 20% with no change in total costs, total expenses, and sales volume. 2. Change the compensation of sales personnel from fixed annual salaries totaling $162,150 to total salaries of $64,860 plus a 4% commission on sales. All other total costs, total expenses, and total sales remain unchanged. 2. Change the compensation of sales personnel from fixed annual salaries totaling $162,150 to total salaries of $64,860 plus a 4% commission on sales. All other total costs, total expenses, and total sales remain unchanged. Your answer is incorrect. Compute the break-even point in sales dollars for 2022 . Compute the contribution margin ratio under each of the alternative courses of action. Contribution margin ratio for alternative 1 % Contribution margin ratio for alternative 2 % Compute the break-even point in sales 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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