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 selling79,000units of product: net sales $1,580,000; total costs and expenses $1,968,000; and net loss $388,000. Costs and expenses consisted of the following.

Total	Variable	Fixed
Cost of goods sold	$1,300,000	$796,000	$504,000
Selling expenses	520,000	94,000	426,000
Administrative expenses	148,000	58,000	90,000
$1,968,000	$948,000	$1,020,000

Management is considering the following independent alternatives for 2017.

1.	Increase unit selling price25% with no change in costs and expenses.
2.	Change the compensation of salespersons from fixed annual salaries totaling $200,000to total salaries of $43,000plus 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 0 decimal places, e.g. 2,510.)

Break-even point

$

(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 0 decimal places, e.g. 2,510.)

Break-even point
1.	Increase selling price	$
2.	Change compensation	$
3.	Purchase machinery	$