Pharoah Inc. had a bad year in 2024. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 72.000 units of product: net sales $1,800,000; total costs and expenses $2,011,500; and net loss $211,500. Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold $1.411.200 $945,000 $466,200 Selling expenses 465,300 82.800 382,500 Administrative expenses 135,000 52.200 82,800 $2.011.5db $1,080,000 $931,500 Management is considering the following independent alternatives for 2025. 1. Increase unit selling price 25% with no change in costs and expenses. 2. 3. Change the compensation of salespersons from fixed annual salaries totaling $180,000 to total salaries of $36.000 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.