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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

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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 75,000 units of product net sales $1.500,000; total costs and expenses $1,750,200; and net loss $250.200. Costs and expenses consisted of the following Cost of goods sold Selling expenses Administrative expenses Total $1.080,000 520,200 150,000 $1.750,200 Variable $600,000 95,000 55.000 $750,000 Fixed $480,000 425,200 95,000 $1,000,200 Management is considering the following independent alternatives for 2020. Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $198.000 to total salaries of $37.995 plus a 5% commission on net sales. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50 1. 2. 3 ta) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal placeses. 0.25 12 and final answer to 0 decimal places, eg 2,510.) Type here to watch a 3 TOSHIBA (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places eg, 0.2512 and final answer to 0 decimal places, e g. 2,510.) Break-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 eg. 0.251 and final answers to decimal places, eg. 2,510.) Break-even point 1. $ 2. Increase selling price Change compensation Purchase machinery $ 3. Which course of action do you recommend? Submit Answer Attempts: 1 of 7 used Save for Later Type here to search c SI G a C SHIBA

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