Ivanhoe 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 515,500 units of product: sales $2,577,500, total costs and expenses$2,673,960, and net loss $96,460. Costs and expenses consisted of the amounts shown below. Total Variable Fixed Cost of goods sold $2,199,700 $1,690,840 $508,860 257,750 94,852 162,898 Administrative expenses 216,510 70,108 146,402 2,673,960 $1,855,800 $818,160 Selling expenses Management is considering the following independent alternatives for 2021. 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 $ 154,650 to total salaries of $ 61,860 plus a 4% commission on sales. 2. Your answer is correct Compute the break-even point in dollars for 2020. Break-even point 2922000 Attempts: 1 of 4 used 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 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:0 of 4 used Check Answer