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 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.
cost of good sold $2,140,000 $1,590, $550,000selling expenses 250,000 92,000 158,000administrative expenses 210,000 68,000 142,000totals $2,600,000 $1,750,000 $850,000management is considering the following independent alternatives for 2018.1) increase unit selling price 20% with no change in cost, expenses, and sales volume.2) change the compensation of salespersons from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on salesa) compute the break-even point in dollars for 2017: break-even point $ ) compute the contribution margin under each of the alternative courses of action: contribution margin for alternative 1 %contribution margin for alternative 2 %compute hte break-even point in dollars under each of the alternative courses of action: break-even point for alternative 1 $ -even point for alternative 2 $