please specify the process step by step

4. Werth & Garza Manufacturing's sales slumped badly in 2018 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500,000 units of product: net sales $2,125,000; total costs and expenses $2,500,000; and net loss $375,000. Costs and expenses consisted of the following: Total $2,000,000 Variable $1,300.000 50,000 150,000 $1,500,000 Fixed $700,000 150,000 150,000 $1000,000 Cost of goods sold Selling expenses Administrative expenses 200.000 300,000 $2,500,000 Management is considering the following alternative for 2018: MANAGERIAL ACCOUNTING 2 Purchase new automated equipment that will change the proportion between variable and fixed expenses to 45% variable and 55% fxed Instructions a) Compute the break-even point in dollars for 2018 b) Compute the break-even point in dollars under the altenative course of action