Compute break-even point under alternative courses of action. P6.1 (LO 1), AN Midlands 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 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. Cost of goods sold Selling expenses Administrative expenses Total $1,568,000 517,000 150,000 $2,235,000 Variable $1,050,000 92,000 Fixed $ 518,000 425,000 58,000 $1,200,000 92,000 $1,035,000 Management is considering the following independent alternatives for 2022. 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed 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 50:50. Instructions a. Compute the break-even point in sales dollars for 2021. b. Compute the break-even point in sales dollars under each of the alternative courses of action for 2022. (Round to the nearest dollar.) Which course of action do you recommend? b. (2) $2,500,000