Question 3 of 13 -78 View Policies Current Attempt in Progress Sunland 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 75,200 units of product: net sales $ 1,880,000; total costs and expenses $ 2,100,900; and net loss $ 220,900. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $ 1,473.920 $ 987,000 $ 486,920 Selling expenses 485,980 86,480 399,500 Administrative expenses 141.000 54,520 86,480 $ 2,100,900 $ 1,128,000 $ 972,900 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 $ 188,000 to total salaries of $37,600 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 eg. 0.251 and final answers to 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 Save for Later Attempts: 0 of 3 used Submit