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: Cost of goods sold Selling expenses Total $1,486,000 Variable $866,000 Fixed $416,000 681,000 356,000 325,000 Administrative expenses 110,000 195,000 $1,332,000 $936,000 305,000 $2,268,000 For 2022, management is considering changing the compensation of the sales force from fixed annual salaries (totaling $170,006) 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? Sales $2,220,000 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