0.8/1 View Policies Show Attempt History Current Attempt in Progress Tanek Corp's 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. Cost of goods sold Selling expenses Administrative expenses Total Variable Fixed $2,140,000 $1,590,000 $550,000 250,000 92,000 158,000 210,000 68,000 142.000 $2,600,000 $1,750,000 $850,000 Management is considering the following independent alternatives for 2021 Increase unit selling price 20% with no change in costs, 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 sales. 1. (a) Your answer is correct. Your answer is partially correct. Compute the contribution margin under each of the alternative courses of action (Round contribution margin ratio to o decimal places, c.8. 50%) 30% Contribution margin for alternative 1 Contribution margin for alternative 2 25 % Compute the break-even point in dollars using the contribution margin ratio under each of the alternative courses of action $ 2039836 Break-even point for alternative 1 Break-even point for alternative 2 $ 3040000 Which course of action do you recommend? Alternative 1