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Tanek Corp.'s sales slumped badly in 2017. For the first time in its history. i product: sales $2,902,500, total costs and expenses $3,018,600, and net

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Tanek Corp.'s sales slumped badly in 2017. For the first time in its history. i product: sales $2,902,500, total costs and expenses $3,018,600, and net loss $116,100. Costs and expenses consisted of the amounts shown below. t operated at a loss. The company's income statement showed the following results from selling 580,500 units of Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses S2484,5401,845.990 s638,550 106,812 183,438 78,948 164,862 $3,018,600 $2,031,750 $986,850 290,250 243,810 Management is considering the following independent alternatives for 2018 : 1. increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $174,150 to total salaries or $69,660 plus a 6% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to o decimal places, e.g. 1,225.) Break-even point (b) Compute the contribution margin under each of the altenative courses of action. (Round final answer to o decimal places, eg.1,225.) Contribution margin for alternative 1 Contribution margin for alternative 2 9% 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 s Break-even point for alternative 2 Which course of action do you recommend

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