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 $1.620.000; and net loss $ 120,000. Costs and expenses consisted of the following Total Fixed $ 511,000 Cost of goods sold Selling expenses Administrative expenses Variable $ 451,000 91.000 $ 962,000 510,000 148,000 58,000 $1,620,000 $600,000 419.000 90,000 $ 1.020,000 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 $ 205,000 to total salaries of $ 35,025 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. 3 (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decirmnal places eg. 0.2512 and final answer too decimal places, eg 2,510) 50:50 (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places es. 0.2512 and final answer too decimal places, eg. 2.510) Break-even points 25.500 (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. Increase selling price $ 1.07368421 2 Change compensation 3. Purchase machinery Which course of action do you recommend? e Textbook and Media