Spike Industries had a bad year in 2021, experiencing an operating loss for the first time. The company experienced sales of $2,220,000 from selling 185,000 units. The cost data can be found below: Total Variable Fixed Cost of goods sold $1.486,000 $866,000 S416,000 Selling expenses 681.000 356,000 325,000 Administrative expenses 305.000 110.000 195.000 $2.268,000 $1,332,000 $936.000 For 2022, management is considering changing the compensation of the sales force from fixed annual salaries (totaling S170,006) to total salaries of $50,000 plus a 6.25% commission on sales. Round to two decimal places when needed. Requirement 1: If management adopts this change, what will be the company's new break-even point in units? Is this an increase or a decrease from their previous break-even point? Requirement 2: Prepare a proof of the new break-even point you calculated in requirement 1. Requirement 3: If actual sales for 2022 are $2,900,000, what will be the company's margin of safety in dollars? As a ratio? Requirement 4: Do you recommend to Spike Industries that they proceed with the proposed changes? Explain your position by referring to your calculations and detailing your thought process