Midlands Inc. had a bad year in 2016. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 78,000 units of product: net sales $2,340,000; total costs and expenses $2,185,000; and net loss $155,000. Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $1,511,000 521,000 153,000 $2,185,000 $1,018,000 94,000 58,000 $1,170,000 $493,000 427,000 95,000 $1,015,000 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 $202,000 to total salaries of $40,000 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 decimal places e.g. 0.25 and final answer to O decimal places, e.g 2,510.) Break-even point 4680000 (b) Compute the break-even point in dollars under each of the alternative courses of action for 2017. (Round contribution margin ratio to 4 decimal places e.g 0.2512 and final answers to O decimal places, e.g. 2,510.) Break-even point 1. Increase selling price 1740010 2. Change compensation 1550909 3. Purchase machinery Alternative 2 Which course of action do you recommend