Current Attempt in Progress Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 78,000 units of product: net sales $1,560,000; total costs and expenses $1,976,000; and net loss $416,000. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,320,400 $785,000 $535,400 Selling expenses 504,600 91,000 413,600 Administrative expenses 151,000 60,000 91,000 $1,976,000 $936,000 $1,040,000 Management is considering the following independent alternatives for 2020. 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 $197,000 to total salaries of $42,010 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.