Tanek Corp.s sales slumped badly in 2017. For the first time in its history, it oper- ated at a loss. The companys income statement showed the following results from selling 500,000 units of product: sales $2,500,000, total costs and expenses $2,600,000, and net loss $100,000. Costs and expenses consisted of the amounts shown on page 999.

Cost of goods sold Selling expenses Administrative expenses Total $2,140,000 250,000 210,000 $2,600,000 Variable $1,590,000 92,000 68,000 $1,750,000 Fixed $550,000 158,000 142,000 $850,000 Management is considering the following independent alternatives for 2018. 1. Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2. Change the compensation of salespersons from fixed annual salaries totaling $150,000 to total salaries of $60,000 plus a 5% commission on sales. Instructions (a) Compute the break-even point in dollars for 2017.