Midlands Inc. had a bad year in 2016. For the rst 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 $ 1,950,000; total costs and expenses $ 1,790,000; and net loss 55 -160,000. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $ 1,126,000 $ 635,000 $ 491,000 Selling expenses 517,000 90,000 427,000 Administrative expenses 147,000 55,000 92,000 $ 1,790,000 $ 780,000 $ 1,010,000 Management is considering the following independent alternatives for 2017. 1. Increase unit selling price 30% with no change in costs and expenses. 2. Change the compensation of salespersons from xed annual salaries totaling $ 201,000 to total salaries of $ 39,000 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and xed cost of goods sold to 50:50. ( b ) Compute the break - even point in dollars under each of the alternative courses of action . Round contribution margin ratio to 4 decimal places e .9 0 . 2512 and final answers to O decimal places , e .g . 2 510 . ) Break- even point Increase selling price 1 458 888 89 2 . Change compensation $ 1.541 818 3 . Purchase machinery 1 , 698 , 792. 27