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 76,700 units of product: Net sales $1,518,660; total costs and expenses $1,744,400; and net loss $225,740. Costs and expenses consisted of the following.

		Total		Variable		Fixed
Cost of goods sold		$1,200,800		$776,900		$423,900
Selling expenses		419,900		78,600		341,300
Administrative expenses		123,700		43,700		80,000
		$1,744,400		$899,200		$845,200

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 $201,600 to total salaries of $44,300 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: (a) Compute the break-even point in dollars for 2014. Increase selling price: Change compensation: Purchase machinery