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Problem 18-3A Tanek Corp.'s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company's income statement

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Problem 18-3A Tanek Corp.'s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 515,500 units of product: sales $2,577,500, total costs and expenses $2,680.600, and net loss $103,100. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $2,206.340 $1,639,290 S567 050 257,750 94.852 162,898 70,108 146,402 $2,680,600 $1,804,250 S876350 216 510 the following independent altem 1 , Increase unit selling price 23% with no change in costs, expenses, and sales volume. 2 Change the compensation of salespersons from fixed annual salanes totaling $154,650 to total salanes of S61 ,860 plus a 5% commission on sales. (a) Compute the break-even point in dollars for 2017. ( Round final answer to 0 decimal places, eg1,225.) Break even point (b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places, e.g. 1,225.) Contribution margin for alternative 1 Contribution margin for alternative 2 Compute the break even pont in dollars under each ofthe alternative course of action. Round selling price per inil to 2 decimal places eg. 5.25 and other calculations to 0 decimal places, eg. 20% and also nal answer to 0 decimal places, e.g. 1,225.) Break-even point for alternative 1 Break even point for altemative 2 Which course of action do you recommend

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