WIR VELION CRACK NEG Problem 18-3A 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 595,500 units of product: sales $2,977,500, total costs and expenses $3,096,600, and net loss $119,100. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,548,740 297,750 250,110 $3,096,600 Variable $1,893,690 109,572 80,988 $2,084,250 Fixed $655,050 188,178 169,122 $1,012,350 Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 25% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $178,650 to total salaries of $71,460 plus a 5% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to decimal places, e.g. 1,225.) Break-even points (b) Compute the contribution margin under each of the alternative courses of action (Round final answer to o decimal places, .g. 1.225.) Contribution margin for alternative 1 Contribution margin for alternative 2 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, e.g. 5.25 and other calculations to o decimal places, e.g. 20% and also final answer to decimal places, e.g. 1,225.) Break-even point for alternative 1s Break-even point for alternative 2 s Which course of action do you recommend? Click If you would like to Show Work for this question: Open Show Work LINK TO TEXT VIDEO SIMILAR