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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 585.500 units of product: sales $2,927.500, total costs and expenses $3,036,000, and net loss $108,500. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2.497,340 $1.920,440 $576.900 Selling expenses 292.750 107,732 185,018 Administrative expenses 245,910 79.628 166.282 $3,036,000 $2.107.800 $928,200 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, eg 1.225.) Break-even points 3315000 (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 1405200 96 Contribution margin for alternative 2 67332596 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, es 20% and also final answers to decimal places, eg. 1.225) Break-even point for alternative 1 2320500 Rraskumint for alternative 2 3428375

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