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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

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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 showed the following results from selling 520,500 units of product: sales $2,602,500, total costs and expenses $2,706,600, and net loss104,100. Costs and expenses consisted of the amounts shown below Total Variable Cost of goods sold Selling expenses $2,227,740 $1,655,190 $572,550 95,772 164,478 70,788 147,822 $2,706,600 1,821,7SO $884,850 260,250 218,610 Management is considering the following independent altenatives for 2018. 1. Increase unit selling price 22% with no change in costs, expenses, and sales volume. 2. change the compensation of salespersons from fixed annual salaries totaling $156,150 to total salaries of $62,460 plus a 6% commission on sales. (a) Compute the break-even point in dolars 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.) 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 to 2 decimal places e g. 5.25 and other calculations to 0 decimal places, e.g. 20% and also final 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

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