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 $1,560,000; total costs and expenses $1,785,000; and net loss $225,000. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses Total $1,114,000 519,000 152,000 $1,785,000 Variable $631,000 92,000 57,000 $780,000 Fixed $483,000 427,000 95,000 $1,005,000 Management is considering the following independent alternatives for 2017. 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $ 201,000 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 decimal places e.g. 0.25 and final answer to 0 decimal places, e.g. 2,510.) Break-even point 2010000 (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. 0.2510 and final answers to O decimal places, e.g. 2,510.) Break-even point 1. Increase selling price 1675000 2. Change compensation 1864444 3. Purchase machinery