Your answer is partially correct. Blossom Inc. had a bad year in 2024. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 81,600 units of product: net sales $2,040,000; total costs and expenses $2,279,700; and net loss $239,700. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,599,360 $1,071,000 $528,360 Selling expenses 527,340 93,840 433,500 Administrative expenses 153,000 59,160 93,840 $2,279,700 $1,224,000 $1,055,700 Management is considering the following independent alternatives for 2025. 1. Increase unit selling price 25% with no change in costs and expenses. 2. 3. Change the compensation of salespersons from fixed annual salaries totaling $204,000 to total salaries of $40,800 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. (a) Compute the break-even point in sales dollars for 2024. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to O decimal places, e.g. 2,510.) Break-even point $ 2639250 (b) Compute the break-even point in sales dollars under each of the alternative courses of action for 2025. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to O decimal places, e.g. 2,510.) Break-even point 1. Increase selling price $ 2030187.5 2. Change compensation $ 2550000 3. Purchase machinery $ 2489725 Which course of action do you recommend? Alternative 1