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 77,000 units of product: net sales $1,540,000; total costs and expenses $1.794.800; and net loss $254,800. Costs and expenses consisted of the following. Cost of goods sold Selling expenses Administrative expenses Total $1,112,800 529,000 153,000 $1,794,800 Variable $618,000 92.000 60,000 $770,000 Fixed $494.800 437,000 93,000 $1,024,800 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 $201,000 to total salaries of $36,015 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. (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 O decimal places, e.g. 2,510.) Break even point $ 2049600 Break-even point $ 2019600 (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.3.0.251 and final answers to decimal places, eg. 2.510.) Break-even point Increase selling price $ 1 2. Change compensation $ 3. Purchase machinery $ Which course of action do you recommend