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Problem 22-3A 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
Problem 22-3A 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 540,500 units of product: sales $2,702,500, total costs and expenses $2,810,600, and net loss $108,100. Costs and expenses consisted of the amounts shown below. Total Variable F Fixed Cost of goods sold Selling expenses Administrative expenses $2,313,340 $1,718,790 $594,550 99,452 170,798 73,508 153,502 $2,810,600$1,891,750 $918,850 270,250 227,010 Management is considering the following independent alternatives for 2018 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 $162,150 to total salaries of $64,860 plus a 6% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places, e.g. 1,225.) 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.) FULL SCREEN PRINTER VERSION BACK even point in dollars for 2017. (Round final answer to o decimal places, e.g. 1,225) NE: Break-even point (b) Compute the contribution margin under each of the alternative courses of action. (Round final Contribution margin for alternative 1 Contribution margin for alternative 2 answer to O decimal places, e.g. 1,225.) reak-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places, e.q. 5.25 and other calculations to 0 decimal places, e.g. 20% and also fina I answer to 0 decimal places, e.g. 1,225.) Break even point for alternative 1 $ Break-even point for alternative 2 Which course of action do you recommend? Click if you would like to Show Work for this question: Qpen Show Work
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