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 505,500 units of product: sales $2,527,500, total costs and expenses $2,628,600, and net loss $101,100. Costs and expenses consisted of the amounts shown below Cost of goods sold Selling expenses Administrative expenses Total $2,163,540 252,750 212,310 $2,628,600 Variable $1,607,490 93,012 68,748 $1,769,250 Fixed $556,050 159,738 143,562 $859,350 Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 23% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $151,650 to total salaries of $60,660 plus a 5% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to o 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.) 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. (Round selling price per unit calculations to 0 decimal places, e.g. 20% and also final answer to o 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: Open Show Work LINK TO TEXT VIDEO: SIMILAR PROBLEM Question Attempts: 0