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Widhorse Corp's sales slumped badly in 2020. For the first time in its history it operated at loss. The compary's incomestatement showed the following results
Widhorse Corp's sales slumped badly in 2020. For the first time in its history it operated at loss. The compary's incomestatement showed the following results from selling 505,500 units of product sales $2.527.500, tota costs and expenses 52.611 .875 \), and net loss $84,375. Costs and expenses consisted of the amounts shown below. Managechent is considerieg the following independent atternatives for 2021. 1. Increase unit seling price 25% with no change in costs, expenges, and sales volurpe 2. Change the cornpersation of malespersons from fued annual salaries totaling $15.650 ro total salaries of 560.060 phes a 5% comthistion onsalis. Compute the break-even point in dollars for 2020. Break-even point eTextbook and Media b) Your answer is partially correct. Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 Contribution margin for alternative 2
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