Pharoah Corp.s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The companys income statement showed the following results from selling 595,500 units of product: sales $2,977,500, total costs and expenses $3,076,750, and net loss $99,250. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,528,890 $2,042,565 $486,325 Selling expenses 297,750 109,572 188,178 Administrative expenses 250,110 80,988 169,122 $3,076,750 $2,233,125 $843,625 Management is considering the following independent alternatives for 2021. 1. Increase unit selling price 25% with no change in costs, expenses, and sales volume.

2. Change the compensation of salespersons from fixed annual salaries totaling $178,650 to total salaries of $71,460 plus a 5% commission on sales.

(a) Correct answer icon Your answer is correct. Compute the break-even point in dollars for 2020. Break-even point $ 3374500

(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?

I need help on b