Cullumber 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 67,200 units of product: net sales $1,680,000; total costs and expenses $1,877,400; and net loss $197,400. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,317,120 $882,000 $435,120 Selling expenses 434,280 77,280 357,000 Administrative expenses 126,000 48,720 77,280 $1,877,400 $1,008,000 $869,400 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 $168,000 to total salaries of $33,600 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. (a) Compute the break-even point in sales dollars for 2021. (Round contribution margin ratio to 4 decimal places e.g. 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.) 1. Increase selling price SA 2. Change compensation $ 3. Purchase machinery $ Break-even point Which course of action do you recommend?