Midlands Inc. had a bad year in 2016. For the first time in its history, it operated at a loss. The companys income statement showed the following results from selling 75,000 units of product: net sales $1,500,000; total costs and expenses $1,900,000; and net loss $400,000. Costs and expenses consisted of the following.

		Total		Variable		Fixed
Cost of goods sold		$1,245,000		$755,000		$490,000
Selling expenses		510,000		90,000		420,000
Administrative expenses		145,000		55,000		90,000
		$1,900,000		$900,000		$1,000,000

Management is considering the following independent alternatives for 2017.

1.		Increase unit selling price 20% with no change in costs and expenses.
2.		Change the compensation of salespersons from fixed annual salaries totaling $195,000 to total salaries of $35,000 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.

(a) Compute the break-even point in dollars for 2016. (Round contribution margin ratio to 2 dec Break-even point (b) Compute the break-even point in dollars under each of the alternative courses of action for 2017 s Break-even point 1. Increase selling price 2. Change compensation 3. Purchase machinery LINK TO TEXT