Crane 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 $83,200$ units of product: net sales $$2,080,000$; total costs and expenses $$2,324,400$; and net loss

$$244,400.$ Costs and expenses consisted of the following.

Management is considering the following independent alternatives for $2022.$

Increase unit selling price $25\%$ with no change in costs and expenses.

Change the compensation of salespersons from fixed annual salaries totaling $$208,000$ to total salaries of $$41,600$ 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

$50$:$50.$

What is the answer to B$.$ #$3$

Answers.

A$.2,691,000$

b$.$

$1.2,070,000$

$2.2,600,000$

$3.?$

Alternative $1$