Crane Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 62,400 units of product: net sales $1,872,000; total costs and expenses $2,090,400; and net loss $218,400. Costs and expenses consisted of the amounts shown below: Cost of goods sold Total $1,404,000 Variable Fixed $967,200 $436,800 Selling expenses 499,200 130,000 369,200 Administrative expenses 187,200 119,600 67,600 $2,090,400 $1,216,800 $873,600 Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 30% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $208,000 to total salaries of $20,800 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.