Werth & Garza Manufacturing's sales slumped badly in 2020 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500,000 units of product: net sales $2,125,000; total costs and expenses $2,500,000; and net loss $375,000. Costs and expenses consisted of the following: Total Variable Fixed Cost of goods sold $2,000,000 $1,300,000 $700,000 Selling expenses 200,000 50,000 150,000 Administrative expenses 300,000 150,000 150,000 $2,500,000 $1,500,000 $1,000,000 Management is considering the following alternative for 2020: Purchase new automated equipment that will change the proportion between variable and fixed expenses to 45% variable and 55% fixed. Compute the break-even point in dollars for 2020. Break-even point in dollars $ Compute the break-even point in dollars under the alternative course of action. Break-even point in dollars $ Save for Later Attempts: 0 of 2 used Submit