P5-3B Olgivic Company had a bad year in 2016. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 60,000 units of product: sales $1,800,000; total costs and expenses $2,010,000; and net loss $210,000. Costs and expenses consisted of the amounts shown below. Cost of goods sold Total $1,350,000 Variable $930,000 Fixed $420,000 Selling expenses Administrative expenses 480,000 180.000 $2.010.000 125,000 355,000 115.000 65.000 $1.170.000 $840,000 Management is considering the following independent alternatives for 2017. 1. Increase unit selling price 25% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $200,000 to total salaries of $20,000 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. Total Variable Fixed Table to Make Chart Unit Fixed Cost Variable Cost Total Cost Sales Cost of goods sold $1,350,000 Selling expenses Administrative expenses $2,010,000 $930,000 $420,000 $480,000 $125,000 $355,000 $180,000 $115,000 $65,000 $1,170,000 $840,000 Fixed Cost Variable cost (per unit) Sales Price (per unit) Unit increments (for x- axis display) Breakeven (units) Breakeven (S)