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 $1.795.200; and net loss $235,200. Costs and expenses consisted of the following Fixed Total $1,125,600 Variable $633,000 Cost of goods sold $492,600 Selling expenses 522,600 90.000 432.600 Administrative expenses 147,000 55.000 90,000 $1,015,200 $1,795,200 $780,000 Management is considering the following independent alternatives for 2020 1. 2 Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $202,000 to total salaries of $40,990 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 3. (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer too decimal places, eg. 2,510.) Break-even point $ 2 Change the compensation of salespersons from fixed annual salaries totaling $202,000 to total salaries of $40,990 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 3 (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer too decimal places, eg. 2,510) Break-even point $ (b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to 3 decimal places eg. 0.251 and final answers to O decimal places, eg. 2,510.) Break-even point 1. Increase selling price $ 2. Change compensation 3. Purchase machinery $ Which course of action do you recommend