P6-43A (SO 1, 2, 4) Calculate the break-even point under alternative courses of action. Gorham Manufacturing's sales slumped badly 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: net sales $1.8 million; total costs and expenses $2,010,000; and net loss $210,000. Costs and expenses consisted of the amounts shown below: Total Variable Fixed Cost of goods sold $1,350,000 $ 930,000 $420,000 Selling expenses 480,000 125,000 355,000 Administrative expenses 180,000 115,000 65,000 $2,010,000 $1,170,000 $840,000 Management is considering the following independent alternatives for 2017: 1. Increase the unit selling price by 25% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totalling $200,000 to total salaries of S20,000 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. Instructions (a) Calculate the break-even point in dollars for 2016. (b) Calculate the break-even point in dollars under each of the alternative courses of action. (Round all ratios to nearest full percent.) Alternative 1, $1,750,000