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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

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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, Management is considering the following independent alternatives for 2023. 1. Increase the unit selling price 25% with no change in total costs, total expenses, and sales volume. 2. Change the compensation of sales personnel from fixed annual salaries totaling $154,650 to total salaries of $61,860 plus 25% commission on sales. All other total costs, total expenses, and total sales remain unchanged. Compute the break-even point in sales dollars for 2022. Break-even point (b) Compute the contribution margin ratio under each of the alternative courses of action. Contribution margin ratio for altemative 1 Contribution margin ratio for alternative 2 . 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

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