Ivanhoe Manufacturing's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 64,800 units of product: net sales $1,944,000; total costs and expenses $2,170,800; and net loss $226,800. Casts and expenses consisted of the amounts shown below. Cost of goods sold Total $1,458,000 Variable Fixed $1,004,400 $453,600 Selling expenses Administrative expenses 518,400 194,400 $2,170,800 135,000 383,400 124,200 70,200 $1,263,600 $907,200 Management is considering the following independent alternatives for 2023: 1. Increase the unit selling price by 30% with no change in costs, expenses, or sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $216,000 to total salaries of $21,600 plus a 5% commission on net sales. 4 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50.