Gorham Manufacturing's sales slumped badly in 2016. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 60,000 units of product: net sales $1.8 million; total costs and expenses $2,010,000; and net loss $210,000. Costs and expenses consisted of the amounts shown below:

Management is considering the following independent alternatives for 2017:
1. Increase the unit selling price by 25% with no change in costs, expenses, and sales volume.
2. Change the compensation of salespersons from fixed annual salaries totalling $200,000 to total salaries of $20,000 plus a 5% commission on net sales.
3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50.
Instructions
(a) Calculate the break-even point in dollars for 2016.
(b) Calculate the break-even point in dollars under each of the alternative courses of action. (Round all ratios to nearest full percent.)

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Total Variable Cost of goods sold Selling expenses Administrative expenses $1,350,000 480,000 180,000 $2,010,000 $ 930,000 125,000 115,000 $1,170,000 Fixed $420,000 355,000 65,000 $840,000