Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 79,000 units of product: net sales $1,580,000; total costs and expenses $1,963,040; and net loss $383,040. Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold Selling expenses $1,305,800 510,240 147,000 $1,963,040 $803,000 $502,800 90,000 420,240 55,000 92,000 $948,000 $1,015,040 Administrative expenses 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 $36,015 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 decimi places 2,510.) Break-even point $ 2537600 (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, eg. 2,510.) Break-even point toering 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 $36,015 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and fed cost of goods sold to 50:50. (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal placeses 0.2512 and final answer to decimal places.es 2,510.) Break-even point $ 2537600 i (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, eg. 2,510.) Break-even point 1952000 i 1. Increase selling price 2. Change compensation 3. Purchase machinery 2417300 i 2591234 Which course of action do you recommend? Alternative 14 e Textbook and Media Attempts: 2 of 5 used Submit Answer Save for Later