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Tanek Corps sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company's income statement showed the

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Tanek Corps 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 555,500 units of product: sales $2,777,500, total costs and expenses $2,869,875, and net loss $92,375. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,358,815 $1,905,365 $453,450 Selling expenses 277,750 102,212 Administrative expenses 233,310 75,548 $2,869,875 $2,083,125 $786,750 175,538 157,762 Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 25% with no change in costs, expenses, and sales volume. 2 Change the compensation of salespersons from fixed annual salaries totaling 5166,650 to total salaries of $66,660 plus a 5% commission on sales. (a) Compute the break-even point in dollars for 2017 (Round final answer to decimal places, eg. 1,225.) Break-even point S (a) Compute the break-even point in dollars for 2017. (Round final answer to decimal places, eg. 1,225) Break-even point $ (b) Compute the contribution margin under each of the alternative courses of action. (Round final answers to O decimal places, es, 1.225.) Contribution margin for alternative 1 96 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, es. 5.25 and other calculations to O decimal places, eg. 20% and also final answers to O decimal places, eg. 1,225.) Break-even point for alternative 1 $ Break-even point for alternative 2 Which course of action do you recommend? Attempts 0 of 2 used submit

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