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Your answer is partially correct. Try again. Tanek Corp.'s sales slumped badly in 2017. For the first time in its history, it operated at a
Your answer is partially correct. Try again. 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 520,500 units of product: sales $2,602,500, total costs and expenses $2,706,600, and net loss $104,100. Costs and expenses consisted of the amounts shown below. Fixed Cost of goods sold Selling expenses Administrative expenses Total $2,227,740 260,250 218,610 $2,706,600 Variable $1,655,190 95,772 70,788 $1,821,750 $572,550 164,478 147,822 $884,850 Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 22% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $156,150 to total salaries of $62,460 plus a 6% 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 2949500 (b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to O decimal places, e.g. 1,225.) Contribution margin for alternative 1 42.62% Contribution margin for alternative 2 T 24, 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 0 decimal places, e.g. 1,225.) Break-even point for alternative 1 2075994 Break-even point for alternative 2 3296500 T Alternative 1 1 Which course of action do you recommend? Click if you would like to Show Work for this question: Open Show Work
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