Dousmann Corp.s sales slumped badly in 2014. For the first time in its history, it operated at a loss. The companys income statement showed the following results from selling 606,000 units of product: sales $2,424,000; total costs and expenses $2,565,400; and net loss $141,400. Costs and expenses consisted of the amounts shown below.

		Total		Variable		Fixed
Cost of goods sold		$2,121,000		$1,454,400		$666,600
Selling expenses		242,400		72,720		169,680
Administrative expenses		202,000		48,480		153,520
		$2,565,400		$1,575,600		$989,800

Management is considering the following independent alternatives for 2015.

1.		Increase unit selling price 21% with no change in costs, expenses, and sales volume.
2.		Change the compensation of salespersons from fixed annual salaries totaling $151,500 to total salaries of $60,600 plus a 6% commission on sales. Compute the break-even point in dollars for 2014? Compute the contribution margin under each of the alternative courses of action?