Question 9 of 14 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 75,000 units of product net sales $1,500,000; total costs and expenses $1,620,000; and net loss $120,000. Costs and expenses consisted of the following Cost of goods sold Selling expenses Administrative expenses Total $962,000 510,000 148,000 $1,620.000 Variable $451,000 91,000 58.000 $600,000 Fixed $511,000 419,000 90,000 $1,020,000 Management is considering the following independent alternatives for 2020, 1 2 Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salarles totaling $205,000 to total salaries of $35.025 plus a 5% commission on net sales, Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of foods sold to 50:50 3 (a) Compute the break-even point in dollars for 2012. (Round contribution morgin ratio to 4 decimal proces es 0.2512 and final answer la) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places eg. 0.2512 and final answer to decimal places, eg. 2,510.) Break-even point (b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to 3 decimal places es. 0.251 and find answers to decimal places, eg 2,510.) Break-even point 1. 2. Increase selling price Change compensation Purchase machinery $ 3 $ Which course of action do you recommend? eTextbook and Media