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leyPLUS Weygandt, Managerial Accounting, 8e Problem 6-1A (Video) Your answer is partially correct. Try again. Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following expenses consisted of the following results from selling 79,000 units of product: net sales $1,580,000; total costs and expenses $1,829,800; and net loss $249,800. Costs and Total Variable Fixed Cost of goods $1,163,400 $637,000 sold $526,400 516,400 93,000 423,400 60,000 90,000 Selling Administrative 150,000 60 expenses $1,829,800 $790,000 $1,039,800 Management is considering the following independent alternatives for 2020 1. Increase unit selling price 25% with no change in costs and expenses Change the compensation of salespersons from fixed annual salaries totaling $195,000 to total salaries of$39 00 pus a S% 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 50:50. (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places e 0,2512 and final answer to 0 decimal places, e.g.2,510.) Break-even point 20 (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 O decimal places, e.g. 2,510.) Break-even point 1. Increase selling price 2. Change compensation 3. Purchase machinery 173 240 Which course of action do you recommend? Alternative 1 Click if you would like to Show Work for this question: Qpen Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Question Attempts: 7 of 15 used SAVE FOR LATER .., ,.. IMG 1073.jpg IMG 1072 (1).jpg Show All esc