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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 79,000 units of product: net sales $1,580,000; total costs and expenses $1,968,240; and net loss $388,240. Costs and expenses consisted of the following. 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 $200.000 to total salaries of $43.000 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 es: 0.2512 and final answer to 0 decimal ploces, es. 2.510.) (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places es. 0.2512 and finat answer to 0 decimal ploces, es. 2.510.) Breakeven point (b) Compute the break-even point in dollars under each of the atternative courses of action for 2020. fRound contribution margin ratio to 3 decimal ploces es. 0.251 and final answers to 0 decimal ploces. e.3.2.510. Which course of action do you recommend

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