Question 2 of 6 - / 12 III View Policies Current Attempt in Progress Carla Vista Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 94,400 units of product: net sales $2,360,000; total costs and expenses $2,637,300; and net loss $277,300. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,850,240 $1,239,000 $611,240 Selling expenses 610,060 108,560 501,500 Administrative expenses 177,000 68,440 108,560 $2,637,300 $1,416,000 $1,221,300 Management is considering the following independent alternatives for 2022. 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $236,000 to total salaries of $47,200 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 sales dollars for 2021. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to 0 decimal places, e.g. 2,510.) Break-even point $ (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2022. (Round contribution margin ratio to 3 decimal places e.g. 0.251 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? e Textbook and Media