Wildhorse Inc. had a bad year in $2021.$ For the first time in its history, it operated at a loss. The company's income statement showed

the following results from selling $104,000$ units of product: net sales $$2,600,000$; total costs and expenses $$2,905,500$; and net loss

$$305,500.$ Costs and expenses consisted of the following.

Management is considering the following independent alternatives for $2022.$

Increase unit selling price $25\%$ with no change in costs and expenses.

Change the compensation of salespersons from fixed annual salaries totaling $$260,000$ to total salaries of $$52,000$ plus a $5\%$

commission on net sales.

Purchase new high$-$tech factory machinery that will change the proportion between variable and fixed cost of goods sold to

$50$:$50.$