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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

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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 520,500 units of product: sales $ 2,602,500, total costs and expenses $ 2,699,520, and net loss $ 97,020. Costs and expenses consisted of the amounts shown below. Total Variable Fixed $513.420 $ 2.220,660 $ 1,707 240 Cost of goods sold Selling expenses Administrative expenses 260.250 95,772 164,478 218.610 70.788 147.822 $ 2.699.520 $ 1.873.800 $825.720 Management is considering the following independent alternatives for 2018, 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume Change the compensation of salespersons from fixed annual salaries totaling $ 156,150 to total salaries of $ 62,460 plus a 4% commission on sales. 2. (a) Compute the break-even point in dollars for 2017. (Round final answer to decimal places, e.g. 1,225.) Break-even point $ (b) Compute the contribution margin under each of the alternative courses of action (Round final answers to decimal places, eg. 1,225.) 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, 19.5.25 and other calculations to decimal places, e3, 20% and also final answers to decimal places, es, 1,225.) Break-even point for alternative 1 $ Break-even point for alternative 2 $ Which course of action do you recommend

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