Midlands Inc. had a bad year in 2016. For the first time in its history, it operated at a loss. The companys income statement showed the following results from selling 77,000 units of product: net sales $2,310,000; total costs and expenses $1,944,000; and net loss $366,000. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,275,000 $774,000 $501,000 Selling expenses 520,000 94,000 426,000 Administrative expenses 149,000 56,000 93,000 $1,944,000 $924,000 $1,020,000 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 $197,000 to total salaries of $40,000 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 $ (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. 0.2512 and final answers to 0 decimal places, e.g. 2,510.)