Sheridan Inc. had a bad year in 2021. For the first time in its history, it operated at a loss. The companys income statement showed the following results from selling 73,600 units of product: net sales $ 1,840,000; total costs and expenses $ 2,056,200; and net loss $ 216,200. Costs and expenses consisted of the following.

	Total		Variable		Fixed
Cost of goods sold		$ 1,442,560		$ 966,000		$ 476,560
Selling expenses		475,640		84,640		391,000
Administrative expenses		138,000		53,360		84,640
		$ 2,056,200		$ 1,104,000		$ 952,200

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 $ 184,000 to total salaries of $ 36,800 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 2021.

(b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2022

1.		Increase selling price		$ enter a dollar amount
2.		Change compensation		$ enter a dollar amount
3.		Purchase machinery		$ enter a dollar amount

Which course of action do you recommend? select an alternative