Tanek Corps sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 500,000 units of product: sales $2,500,000, total costs and expenses $2,600,000, and net loss $100,000. Costs and expenses consisted of the amounts shown below. Total Variable Fixed $2,140,000 $1.590,000 $550,000 Cost of goods sold Selling expenses 250,000 92,000 158,000 Administrative expenses 210,000 68,000 142,000 $2,600,000 $1,750,000 $850,000 Management is considering the following independent alternatives for 2021 1 2. Increase unit selling price 20% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales. Compute the contribution margin under each of the alternative courses of action (Round contribution margin ratio to O decimal places, eg. 50%) % 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. $ Break-even point for alternative 1 $ Break-even point for alternative 2 Which course of action do you recommend? e Textbook and Media Attempts: 0 of 3 used Submit Answer Save for Later MacBook Pro