Question: Current Attempt in Progress Bramble Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The

 Current Attempt in Progress Bramble Inc. had a bad year in2019. For the first time in its history, it operated at a

Current Attempt in Progress Bramble 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 80,000 units of product: net sales $ 1,600,000; total costs and expenses $ 1,815,200; and net loss $ 215,200. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $ 1,156,000 $ 650,000 $ 506,000 Selling expenses 512,200 93,000 419,200 Administrative expenses 147,000 57,000 90,000 $ 1,815,200 $ 800,000 $ 1,015,200 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 $ 199,000 to total salaries of $ 45,010 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.g. 2,510.) $ Break-even point (b) Compute the break-even point in dollars under each of the alternative courses of action for 2020. (Round contribution margin ratio to 3 decimal places e.g. 0.251 and final answers to 0 decimal places, e.g. 2,510.) Break-even point 1. $ Increase selling price 2. Change compensation $ 3. $ Purchase machinery Which course of action do you recommend

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