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 585,500 units of product: sales $2,927,500, total costs and expenses $3,036,840, and net loss $109,340. Costs and expenses consisted of the following amounts. Total Variable Fixed Cost of goods sold $2.498,180 $1,920,440 $577,740 Selling expenses 292,750 107,732 185,018 Administrative expenses 245,910 79,628 166,282 $3,036,840 $2,107,800 $929,040 Management is considering the following independent alternatives for 2023. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $175,650 to total salaries of $70,260 plus a 5% commission on sales. 2. Compute the break-even point in dollars for 2022. Break-even point 3318000 Compute the contribution margin ratio under each of the alternative courses of action. (Round answers to 2 decimal places, eg 21.22.) Contribution margin ratio for alternative 1 Contribution margin ratio for alternative 2 Compute the break-even point in 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? %24 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 585,500 units of product: sales $2,927,500, total costs and expenses $3,036,840, and net loss $109,340. Costs and expenses consisted of the following amounts. Total Variable Fixed Cost of goods sold $2.498,180 $1,920,440 $577,740 Selling expenses 292,750 107,732 185,018 Administrative expenses 245,910 79,628 166,282 $3,036,840 $2,107,800 $929,040 Management is considering the following independent alternatives for 2023. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $175,650 to total salaries of $70,260 plus a 5% commission on sales. 2. Compute the break-even point in dollars for 2022. Break-even point 3318000 Compute the contribution margin ratio under each of the alternative courses of action. (Round answers to 2 decimal places, eg 21.22.) Contribution margin ratio for alternative 1 Contribution margin ratio for alternative 2 Compute the break-even point in 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? %24

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