Current Attempt in Progress

Midlands lnc had a bad year in $2019.$ For the first time in its history, it operated at a loas. The company's income statement showed the

following results from selling $90,000$ units of product: nat alas $$2,000,000$; total coats and evoanses $$2,235,000$; and net loss

$$235,000.$ Cocts and expanaes consistad of the following.

Managament is considering the following independent al ternatives for $2020.$

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

Change the compensation of asalesersons from fixed annual sal aries totaling $$200,000$ to total salaries of $$40,000$ plus a $596$

commission on netsales.

Purchase naw high$-$tech factory machinary that will change the proportion betwean variable and fxed cost of goods sold to

$50$:$50.$

$($a$)$ Compute the break$-$svan paint in dollars for $2019.($Round contribution margin ratio to $4$ decimal places eg$.0\mathrm{.}2512$ and final answer to $0$

decimal places, e$\mathrm{.}8.2\mathrm{.}510.$J

Preak$-$avan point $

$($b$)$ Compute the braak$-$evan paint in dallars undar each of the altarnative courses of action for $2020.($Round contribution margin ratio to

$3$ decimal places eg$.0\mathrm{.}251$ and final answers to $0$ decimal places, e$.\mathrm{.}8.2,510.$J

Break$-$even point

Increaseselling price $

Change comperation $

Purchasemachinary $

Which course of action do you recommend?