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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
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 53,044,600, and net loss $117,100, Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $2,505,940 S1,861,890 $644,050 107,732 185,018 79,628166,282 $3,044,600 2,049,250 $995,350 292,750 245,910 Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 21% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $175,650 to total salaries of $70,260 plus a 5% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places, e.g. 1,225.) Break-even point (b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places, e.g. 1,225.) Contribution margin for alteative 1 Contribution margin for alternative 2 Compute the break even point in dollars under each of the alternative courses of ction Round selling proce per unit to 2 decrmal places e.g. 5.25 and other calculations to 0 decrmal places, e g 20% and also final answer to 0 decimal places, e.g. 1,225.) Break-even point for alternative 1 Break-even point for altemative 2 s Which course of action do you recommend
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