Sheridan Corp's sales slumped badly in 2022. 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 $2,663,375, and net loss $85,875. Costs and expenses consisted of the following amounts. Total Variable Fixed Cost of goods sold $2,189,115 $1,768,165 $420,950 Selling expenses 257,750 94,852 162,898 Administrative expenses 216,510 70,108 146,402 $2,663,375 $1,933,125 $730,250 Management is considering the following independent alternatives for 2023. 1. 2. Increase the unit selling price 25% with no change in total costs, total expenses, and sales volume. Change the compensation of sales personnel from fixed annual salaries totaling $154,650 to total salaries of $61,860 plus a 5% commission on sales. All other total costs, total expenses, and total sales remain unchanged. Compute the contribution margin ratio under each of the alternative courses of action. Contribution margin ratio for alternative 1 Contribution margin ratio for alternative 2 % Compute the break-even point in sales 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? Alternative 1