Question 6 of 7 < View Policies Current Attempt in Progress -/4 E Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 78,000 units of product: net sales $1,560,000; total costs and expenses $1,785,000; and net loss $225,000. Costs and expenses consisted of the following Total Variable Fixed Cost of goods sold $1,121,600 $631,000 $490,600 Selling expenses 511.400 92,000 419,400 Administrative expenses 152,000 57,000 95,000 $1,785,000 $780,000 $1,005,000 Management is considering the following independent alternatives for 2020. 1 Increase unit selling price 25% with no change in costs and expenses. 2 3. Change the compensation of salespersons from fixed annual salaries totaling $201,000 to total salaries of $34,980 plus a 5% commission on net sales. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50