Ivanhoe Corp'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 540,500 units of product: sales $2,702,500, total costs and expenses $2,802,600, and net loss $100,100. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total 2. $2,305,340 $1,772,840 270,250 Variable 227,010 99,452 73,508 Fixed $532,500 170,798 153,502 $2,802,600 $1,945,800 $856,800 Management is considering the following independent alternatives for 2021. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. Change the compensation of salespersons from fixed annual salaries totaling $162,150 to total salaries of $64,860 plus a 4% commission on sales.

Ivanhoe Corp'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 540,500 units of product: sales $2,702,500, total costs and expenses $2,802,600, and net loss $100,100. Costs and expenses consisted of the amounts shown below. Management is considering the following independent alternatives for 2021. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $162,150 to total salaries of $64,860 plus a 4% commission on sales. Compute the break-even point in dollars for 2020 . Break-even point