I need the information in bold below answered.

Problem 18-4A a-b (Part Level Submission) (Video)

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 selling520,500units 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 $2,219,182 $1,738,470 $480,712

Selling expenses 260,250 95,772 164,478

Administrative expenses. 218,610 70,788 147,822

$2,698,042 $1,905,030 $793,012

Management is considering the following independent alternatives for 2021.

1. Increase unit selling price22% with no change in costs, expenses, and sales volume.
2. Change the compensation of salespersons from fixed annual salaries totaling $156,150to total salaries of $62,460plus a6% commission on sales.

(a)

Compute the break-even point in dollars for 2020.

Break-even point:

(b)

Compute the contribution margin under each of the alternative courses of action.

Contribution margin for alternative 1 _______%

Contribution margin for alternative 2________%

Compute the break-even point in 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?

Alternative 1

Alternative 2