Gorham Manufacturing's sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 56,000 units of product: net sales $1,680,000; total costs and expenses $1,864,800; and net loss $184,800. Costs and expenses consisted of the amounts shown below: Total Variable Fixed Cost of goods sold $1,194,800 $845,000 $349,800 Selling expenses Administrative expenses 473,000 197,000 121,000 352,000 126,000 71,000 $1,864,800 $1,092,000 $772,800 Management is considering the following independent alternatives for 2021. 1. Increase the unit selling price by 25% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $211,000 to total salaries of $21,000 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. (b) Calculate the break-even point in dollars for 2020. Break-even point eTextbook and Media 2208000 Attempts: 1 of 3 used Calculate the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to 2 decimal places, eg. 15.25% and final answers to O decimal places, eg. 5,275.) Break-even point if unit selling price increases by 25% Break-even point if there is a change in compensation Break-even point if there is a purchase of new high-tech factory machinery