Chapter 6 Assignment Question 3 of 13 < > -18 E Ivanhoe 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 86,400 units of product: net sales $2.160.000; total costs and expenses $2.413,800; and net loss $253,800. Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold $1,693,440 $1,134,000 $559,440 Selling expenses 558,360 99.360 459,000 Administrative expenses 162.000 62,640 99.360 $2,413,800 $1,296,000 $1,117,800 Management is considering the following independent alternatives for 2022. 1. Increase unit selling price 25% with no change in costs and expenses. 2 3. Change the compensation of salespersons from fixed annual salaries totaling $216,000 to total salaries of $43,200 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 50:50. (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer to O decimal places, e.g. 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 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 $ Which course of action do you recommend