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 78,000 units of product: net sales $1,560,000; total costs and expenses $1,785,000; and net loss $225,000. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses Total $1,121,600 511,400 152,000 $1,785,000 Variable $631,000 92,000 57,000 $780,000 Fixed $490,600 419,400 95,000 $1,005,000 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 $ 201,000 to total salaries of $34,980 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.) Break-even point 2010000 (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 o decimal places, e.g. 2,510.) Break-even point 1675000 1. Increase selling price 2. Change compensation 1864400 3. Purchase machinery Which course of action do you recommend? Alternative 1 Click if you would like to show Work for this question: Open Show Work