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 78,000 units of product: net sales $2,340,000; total costs and expenses $1,936,000; and net loss $-404,000. Costs and expenses consisted of the following.

Your answer is incorrect. Try again 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 $2,340,000; total costs and expenses $1,936,000; and net loss $-404,000. Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $1,260,000 523,000 153,000 $1,936,000 $785,000 93,000 58,000 $936,000 $475,000 430,000 95,000 $1,000,000 Management is considering the following independent alternatives for 2017 I. Increase unit selling price 30% with no change in costs and expenses 2. Change the compensation of salespersons from fixed annual salaries totaling $199,000 to total salaries of $45,000 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 1,923,077 (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 1,470,588 2. Change compensation 8,460,000 3. Purchase machinery 1,651,032 Alternative 3 Which course of action do you recommend? Alternat