Problem 19-1A Midlands Inc. 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 79,000 units of product: net sales $1,975,000, total costs and expenses 1,997,500; and net loss $22,500. Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold Selling expenses Administrative expenses $1,337,500 514,000 146,000 $1,997,500 $840,500 91,000 56,000 $987,500 $497,000 423,000 90,000 $1,010,000 Management is considering the following independent alternatives for 2017 I. Increase unit selling price 20% with no change in costs and expenses 2. Change the compensation of salespersons from fixed annual salaries totaling $199,000 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 2017. (Round contribution margin ratio to 2 decimal places e.g. 0.25 and final answer to 0 decimal places, e.g. 2,510.) Break-even point (b) Compute the break-even point in dollars under each of the alternative courses of action. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answers to 0 decimal places, e.g. 2,510.) Break-even point 1. Increase selling price 2. Change compensation 3. Purchase machinery Which course of action do you recommend? Click if you would like to Show Work for this question: Open Show Work