CALCULATOR PRINTER VERSION BAC Problem 6-1A (Video) Midlands 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 79,000 units of product: net sales $1,580,000; total costs and expenses $1,968,240; and net loss $388,240. Costs and expenses consisted of the following Fixed Cost of goods sold Selling expenses Administrative expenses Total $1,307,600 512,640 148,000 $1,968,240 Variable $796,000 94,000 58,000 $948,000 $511,600 418,640 90,000 $1,020,240 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 salaries totaling $200,000 to total salaries of $43,000 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. (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places e.g. 0.2512 and final answer to o decimal places, e 2,510.) Break-even points decimal places.. 0.25 (b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to and final answers to O decimal places, .9. 2,510.) Break-even point 1. Increase selling price 2. Change compensation 3. Purchase machinery Which course of action do you recommend? Click if you would like to Show Work for this question: Open Show Work