Question 7 Pronghorn Corp.'s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 515,500 units of product: sales $2,577,500, total costs and expenses $2,680,600, and net loss $103, 100. Costs and expenses consisted of the amounts shown below. Cost of goods sold Selling expenses Administrative expenses Total $2,206,340 257,750 216,510 $2,680,600 Variable $1,639,290 94,852 70,108 $1,804,250 Fixed $567,050 162,898 146,402 $876,350 Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 21% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $154,650 to total salaries of $61,860 plus a 6% commission on sales. (a) Compute the break-even point in dollars for 2017. (Round final answer to o decimal places, e.g. 1,225.) Break-even point & (b) Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places, e.g. 5.25 and other calculations to 0 decimal places, e.g. 20% and also final answer to 0 decimal places, e.g. 1,225.) Break-even point for alternative 1 + Break-even point for alternative 2. Which course of action do you recommend