Fredonia Inc. had a bad year in 2013. For the first time in its history, it operated at a loss. The companys income statement showed the following results from selling 76,000 units of product: Net sales $1,466,800; total costs and expenses $1,731,500; and net loss $264,700. Costs and expenses consisted of the following.

Problem 19-1A Fredonia Inc. had a bad year in 2013. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 76,000 units of product: Net sales $1,466,800; total costs and expenses $1,731,500; and net loss $264,700. Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $1,204,800 418,000 108,700 $1,731,500 $784,500 73,200 44,100 $901,800 $420,300 344,800 64,600 $829,700 Management is considering the following independent alternatives for 2014 1. Increase unit selling price 22% with no change in costs and expenses 2. Change the compensation of salespersons from fixed annual salaries totaling $195,600 to total salaries of $35,200 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50 Compute the break-even point in dollars for 2014. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answers to 0 decimal places, e.g 2,510.) Break-even point