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 $1,950,000; total costs and expenses $1,790,000; and net loss $-160,000. Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $1,126,000 517,000 147,000 $1,790,000 $635,000 90,000 55,000 $780,000 $491,000 427,000 92,000 $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 fixed 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 fixed cost of goods sold to 50:50. (a) Compute the break-even point in dollars for 2017. (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 1683,333 (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.g. 0.2512 and final answers to 0 decimal places, e.g. 2,510.) Break-even point 1. Increase selling price 1,457,011 2. Change compensation 1,541,818 3. Purchase machinery 1,653,732 Alternative 1 Which course of action do you recommend