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 76,000 units of product: net sales $1,520,000; total costs and expenses $1,780,000; and net loss $260,000. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,117,000 $611,000 $506,000 Selling expenses 514,000 93.000 421,000 Administrative expenses 149,000 56,000 93,000 $1,780,000 $760,000 $1,020,000 Management is considering the following independent alternatives for 2017 Increase unit selling price 30% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $199,000 to total salaries of $36,000 plus a 5 % 2 commission on net sales 1. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. 3. (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 $ (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 2. Change compensation $ 3. Purchase machinery Which course of action do you recommend