(a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to 0 decimal places, e.g. 2,510.)Break-even point $_________(b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to 0 decimal places, e.g. 2,510.) Break-even point1.Increase selling price $_______ 2.Change compensation $_______ 3.Purchase machinery $_______

Midlands Inc. had a bad year in 2019. For the rst time in its history, it operated at a loss. The company's income statement showed the following results from selling 80,000 units of product: net sales $2,000,000; total costs and expenses $2,235,000; and net loss $235,000. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $ 1,568,000 $1,050,000 $5 18,000 Selling expenses 517,000 92,000 425,000 Administrative expenses 150,000 58,000 92,000 $2,235,000 $1,200,000 $1,035,000 Management is considering the following independent alternatives for 2020. 1' Increase unit selling price 25% with no change in costs and expenses. 2' Change the compensation of salespersons from xed annual salaries totaling $200,000 to total salaries of $40,000 plus a 5% commission on net sales. 3- Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to EAJIA