Management is considering the following independent alternatives for 2021. 1. Increasing 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 $217,000 to total salaries of $20,000 plus a 5% commission of 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 How do I calculate the break even point in dollars under each of the alternative courses of action. 1. Break even point of unit selling price is increased by 25% 2. Break even point if there is a change in compensation 3. Break even point if there is a purchase of new high tech factory machinery

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 57,000 units of product: net sales $1,539,000; total costs and expenses $1,834,488; and net loss $295,488. Costs and expenses consisted of the amounts shown below: Total Variable Fixed Cost of goods sold $1,189,488 $794,520 $394,968 Selling expenses 463,000 130,000 333,000 Administrative expenses 182,000 122,000 60,000 $1,834,488 $1,046,520 $787,968