Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The companys income statement showed the following results from selling 75,000 units of product: net sales $1,500,000; total costs and expenses $1,620,000; and net loss $120,000. Costs and expenses consisted of the following.

	Total	Variable	Fixed
Cost of Goods Sold	$962,000	$451,000	$511,000
Selling Expenses	510,000	91,000	419,000
Administrative Expenses	148,000	58,000	90,000
	$1,620,000	$600,000	$1,020,000

Management is considering the following independent alternatives for 2020. 1.Increase unit selling price 25% with no change in costs and expenses.

2.Change the compensation of salespersons from fixed annual salaries totaling $205,000 to total salaries of $35,025 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 2019. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to 0 decimal places, e.g. 2,510.)

(b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to 0 decimal places, e.g. 2,510.)

	Break-even point
1) increase selling price	$
2) change compensation	$
3) purchase machinery	$