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 $1,126,000 $635,000 $491,000 517,000 90,000 427,000 Administrative expenses147,000 55,00092,000 $1,790,000 $780,000 $1,010,000 Cost of goods sold Selling expenses 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 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 5% commission on net sales. 50:50