Q.10 Kleen Manufacturing had a bad year in 2013. For the first time in its history it operated at a loss. The company's income statement showed the following results from selling 64,000 units of product: Net sales $1,600,000; total costs and expenses $1,880,000; and net loss $280,000. Costs and expenses consisted of the following. Variable $1,350,000 $930,000 65,000 110,000 45,000 $1,880,000 $1,040,000 Fixed $420,000 355,000 65,000 $840,000 Total Cost of goods sold Selling expenses Administrative expenses 420,000 Management is considering the following independent alternatives for 2014. I. Increase unit selling price 40% 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 $30,000 plus a 5% commission on net sales. Questions: (a) Compute the break-even point in dollars for 2013. (b) Compute the break-even point in dollars under each of the alternative courses of action. Which course of action do you recommend? (Round ratios to nearest full percent)