Sheridan Inc. had a bad year in 2024. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 91,200 units of product: net sales $2,280,000; total costs and expenses $2,547,900; and net loss $267,900. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,787,520 $1,197,000 $590,520 Selling expenses 589,380 104,880 484,500 Administrative expenses 171,000 66,120 104,880 $2,547,900 $1,368,000 $1,179,900 Management is considering the following independent alternatives for 2025. 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 $228,000 to total salaries of $45,600 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. (a) Compute the break-even point in sales dollars for 2024. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to O decimal places, e.g. 2,510.) Break-even point $ 2,949,750 (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2025. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to O decimal places, e.g. 2,510.) Break-even point 1. Increase selling price 2,269,038 2. Change compensation $ 2,850,000 3. Purchase machinery 2,888,776 Which course of action do you recommend? Alternative 1