Midlands Inc. had a bad year in 2019. For the rst time in its history, it operated at a loss. The company's income statement showed the following results from selling 80,000 units of product: net sales $1,600,000; total costs and expenses $1,824,800; and net loss $224,800. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,160,000 $652,000 $508,000 Selling expenses 515,800 91,000 424,800 Administrative expenses 149,000 57,000 92,000 $1,824,800 $800,000 $1,024,800 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 xed annual salaries totaling $195,000 to total salaries of $41,985 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and xed 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 nal answer to 0 decimal places, e.g. 2,510.) Brea k-even point $ (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 35 {F Which course of action do you recommend