Tanek Corp.s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The companys income statement showed the following results from selling 540,500 units of product: sales $2,702,500, total costs and expenses $2,810,600, and net loss $108,100. Costs and expenses consisted of the amounts shown below.

		Total		Variable		Fixed
Cost of goods sold		$2,313,340		$1,718,790		$594,550
Selling expenses		270,250		99,452		170,798
Administrative expenses		227,010		73,508		153,502
		$2,810,600		$1,891,750		$918,850

Management is considering the following independent alternatives for 2018.

1.		Increase unit selling price 21% with no change in costs, expenses, and sales volume.
2.		Change the compensation of salespersons from fixed annual salaries totaling $162,150 to total salaries of $64,860 plus a 6% commission on sales.

(b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places, e.g. 1,225.) 1621500 % 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 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? (b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places, e.g. 1,225.) 1621500 % 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 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