Current Attempt in Progress Sheridan 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 79,000 units of product: net sales $1,975,000; total costs and expenses $1,997,300; and net loss $22,300. Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold $1,345,250 $840,500 $504,750 Selling expenses 506,050 91,000 415,050 Administrative expenses 146,000 56,000 90,000 $1,997,300 $987,500 $1,009,800 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 $199,000 to total salaries of $42,985 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.