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 77,500 units of product: Net sales $1,503,500; total costs and expenses $1,733,000; and net loss $229,500. Costs and expenses consisted of the following. Management is considering the following independent alternatives for 2014. 1. Increase unit selling price 24% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $201,100 to total salaries of $39,800 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. (a) Compute the break-even point in dollars for 2014. Break-even point (b) Compute the break-even point in dollars under each of the alternative courses of action. 1. Increase selling price 2. Change compensation 3. Purchase machinery Which course of action do you recommend