Question 3 of 13 -1 = Wildhorse Inc. had a bad year in 2026. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 97,600 units of product: net sales $2,440,000; total costs and expenses $2,726,700; and net loss $286,700. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,912,960 $1,281,000 $631,960 Selling expenses 630,740 112,240 518,500 Administrative expenses 183,000 70,760 112,240 $2,726,700 $1.464.000 $1.262.700 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 $244,000 to total salaries of $48,800 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 2026. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to O 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 O decimal places, e.g. 2,510.) o P Y. UPPORT Question 3 of 13 11 = 2. Change the compensation of salespersons from fixed annual salaries totaling $244,000 to total salaries of $48,800 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 2026. (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 O decimal places, e.g. 2,510.) Break-even point 1. Increase selling price $ 2. Change compensation $ 3. Purchase machinery 3$ Which course of action do you recommend? ~ eTextbook and Media Attempts: 0 of 3used UPPORT