A company's income statement from 2019 showed the following results from selling 540,500 units of product: sales $2,702,500, total costs and expenses $2,810,600, and net loss $108,100. Costs and expenses consisted of the amounts shown below.

Total

Variable

Fixed Cost of goods sold

$2,313,340

$1,718,790

$594,550 Selling expenses

270,250

99,452

170,798 Administrative expenses

227,010

73,508

153,502

$2,810,600

$1,891,750

$918,850

Management is considering the following independent alternatives for 2020. 1.

Increase unit selling price 21% with no change in costs, expenses, and sales volume. 2.

Change the compensation of salespersons from fixed annual salaries totaling $162,150 to total salaries of $64,860 plus a 6% commission on sales.