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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
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 585, 500 units of product: sales $2, 927, 500, total costs and expenses $3, 044, 600, and net loss $117, 100. Costs and expenses consisted of the amounts shown below. Management is considering the following independent alternatives for 2018. Increase unit selling price 21% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $175, 650 to total salaries of $70, 260 plus a 5% commission on sales, Compute the break-even point in dollars for 2017. (Round final answer to O decimal places, e.g. 1, 225.) Compute the contribution margin under each of the alternative courses of action. (Round final answer to O decimal places, e.g. 1, 225.) Contribution margin for alternative Contribution margin for alternative 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 O 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
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