Cullumber Corp's sales slumped badly in 2022. For the first time in its history, it operated...

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Cullumber Corp's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 555,500 units of product: sales $2,777,500, total costs and expenses $2,869,375, and net loss $91,875. Costs and expenses consisted of the following amounts. Total Variable Fixed Cost of goods sold $2,358,315 $1,905,365 $452,950 Selling expenses 277,750 102,212 175,538 Administrative expenses 233,310 75,548 157,762 $2,869.375 $2,083,125 $786,250 Management is considering the following independent alternatives for 2023. 1. 2. Increase the unit selling price 25% with no change in total costs, total expenses, and sales volume. Change the compensation of sales personnel from fixed annual salaries totaling $166,650 to total salaries of $66,660 plus a 5% commission on sales. All other total costs, total expenses, and total sales remain unchanged. Compute the break-even point in sales dollars for 2022. Break-even point $ eTextbook and Media 3145000 (b) Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 Contribution margin for alternative 2 % % Compute the break-even point in sales dollars under each of the alternative courses of action. Break-even point for alternative 1 $ Break-even point for alternative 2 Which course of action do you recommend? Attempts: 1 of 3 used Cullumber Corp's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 555,500 units of product: sales $2,777,500, total costs and expenses $2,869,375, and net loss $91,875. Costs and expenses consisted of the following amounts. Total Variable Fixed Cost of goods sold $2,358,315 $1,905,365 $452,950 Selling expenses 277,750 102,212 175,538 Administrative expenses 233,310 75,548 157,762 $2,869.375 $2,083,125 $786,250 Management is considering the following independent alternatives for 2023. 1. 2. Increase the unit selling price 25% with no change in total costs, total expenses, and sales volume. Change the compensation of sales personnel from fixed annual salaries totaling $166,650 to total salaries of $66,660 plus a 5% commission on sales. All other total costs, total expenses, and total sales remain unchanged. Compute the break-even point in sales dollars for 2022. Break-even point $ eTextbook and Media 3145000 (b) Compute the contribution margin under each of the alternative courses of action. Contribution margin for alternative 1 Contribution margin for alternative 2 % % Compute the break-even point in sales dollars under each of the alternative courses of action. Break-even point for alternative 1 $ Break-even point for alternative 2 Which course of action do you recommend? Attempts: 1 of 3 used