Waterway Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 78,000 units of product: net sales $1,560,000; total costs and expenses $1.785,000, and net loss $225,000. Costs and expenses consisted of the following Cost of goods sold Selling expenses Total Variable Fixed $1,121,600 $631,000 $490,600 511,400 92,000 419,400 152.000 57,000 95,000 $1.785.000 $780,000 $1,005.000 Administrative expenses Management is considering the following independent alternatives for 2020. 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual stories totaling $201.000 to total salaries of $34,900 plus a 5% commission on net 1. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. sales tal Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places es 0.2512 and final answer to decimal places, es 2,510.) Break even points tl Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to 3 decimal places es 0.251 and final answers to decimal places, es 2,510) Break-even point 1 Increase selling price $ 2 Change compensation $ 2. Purchase machinery (b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratlo to 3 decimal place 0.251 and final answers to decimal places, e.g. 2,510.) Break-even point 1 Increase selling price 2. Change compensation $ 3. Purchase machinery $ Which course of action do you recommend? e Textbook and Media Save for Later