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Midlands Inc. had a bad year in 2019. For the first time in its historv it operated at a loss. The company/s income statement showed

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Midlands Inc. had a bad year in 2019. For the first time in its historv it operated at a loss. The company/s income statement showed the following recults from selling 75,000 units of product net tales $1.500,000, totsl conts and expenses 51.750,200, and net loss $250.200. Costs and experises consisted of the following. Management is considering the following independent alternatives for 2020 1. Increase unit selling price 25% with no change in costs and epenses. 2. Change the compensation of salespersons from fued anvual waries totalling $193,000 to total salaries of 537.995 plus a 5% commission on net sales. 3. Purchate newhightech 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 2019. (Round contribution margin rutio to 4 decimal places eg 0.2512 and final answer to 0 decimal places as 2,510J Break-evenpoint (b) Compute the break-even point in dollars under each of the aternative courses of action for 2020. (Round contribution marzin rotio to 3 decimal ploces es, 0.251 and final answers to 0 decimal places es 2.510. Which course of action do you recommet

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