View Policies Current Attempt in Progress Cullumber Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 84,800 units of product:net sales $2,120,000, total costs and expenses $2,369,100; and net loss $249.100 Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold $1,662,080 $1.113.000 $549,000 Selling expenses 548,020 97,520 450.500 Administrative expenses 159.000 61480 97.520 $2.369.100 $1,272,000 $1,097,100 Management is considering the following independent alternatives for 2022 1 2 Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersors from fixed annual salaries totaling $212,000 to total salaries of $42.400 plus a 5% commission on net sales Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 3. 50:50 (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal ploceses, 0.2512 ond final answer to decimal places, es 2.510) Break-even point $ (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2022. (Round contribution margin ratio to 3 decimal places es 0.251 and final answers to O decimal places, es 2,530) Break-even point 1. 1. Increase selling price $ 2 Change compensation $ 3. Purchase machinery $ Alternative 1 Alternative 2 Alternative 3 Which course of action do you recommend? eTextbook and Media