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 585,500 units of product: sales $2,927,500, total costs and expenses $3,036,840, and net loss $109,340, Costs and expenses consisted of the amounts shown below. Total Variable Fixed $2,498,180 $1,920,440 $577,740 Cost of goods sold Selling expenses 292,750 107,732 185.018 Administrative expenses 245,910 79.628 166,282 $3,036,840 $2,107,800 $929,040 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 $175,650 to total salaries of $70,260 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 O decimal places, e.g. 1,225.) Contribution margin for alternative 1 % Contribution margin for alternative 2 % (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, eg. 5.25 and other calculations to decimal places, e.g. 20% and also final answers to 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?