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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 following

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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 following results from selling 535,500 units of product: sales $2,677,500, total costs and expenses $2,784,600, and net loss $107,100. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,291,940 $1,702,890 $589,050 Selling expenses 267,750 98,532 169,218 Administrative expenses 224,910 72,828 152,082 $2784,600 $1,874,250 $910,350 Management is considering the following independent alternatives for 2018 Increase unit selling price 20 % with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $160,650 to total salaries of $64,260 plus 1. 2 a 6% commission on sales. (a) Compute the break-even point in dollars 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 O decimal places, e s. 1,225.) Contribution margin for alternative 1 Contribution margin for alternative 2 % % 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 s. 20% and also final answer to 0 decimal places, e.g. 1,225.) $ Break-even point for alternative 1 Break-even point for alternativ e 2 $ Which course of action do you recommend

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