Exercise 5-16 a,c (Video) Sunland Company estimates that variable costs will be 70.00% of sales, and fixed costs will total $456,000. The selling price of the product is $5. Compute the break-even point in (1) units and (2) dollars. (1) Break-even sales units (2) Break-even sales LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Assuming actual sales are $2,000,000, compute the margin of safety in (1) dollars and (2) as a ratio. (1) Margin of safety $ (2) Margin of safety ratio % 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 585,500 units of product: sales $2,927,500, total costs and expenses $3,036,840, and net loss $109,340. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,498,180 292,750 245,910 $3,036,840 Variable $1,920,440 107,732 79,628 $2,107,800 Fixed $577,740 185,018 166,282 $929,040 Management is considering the following independent alternatives for 2021. Increase unit selling price 20% with no change in costs, expenses, and 1. sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $175,650 to total salaries of $70,260 plus a 4% commission on sales. Compute the break-even point in dollars for 2020. Break-even point LINK TO TEXT Compute the contribution margin under each of the alternative courses of action. (Round contribution margin ratio to 0 decimal places, e.g. 50%.) Contribution margin for alternative 1 % Contribution margin for alternative 2 % Compute the break-even point in dollars using the contribution margin ratio under each of the alternative courses of action. Break-even point for alternative 1 $1 Break-even point for alternative 2 $ Which course of action do you recommend