Current Attempt in Progress 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 77,000 units of product: net sales $1.540,000; total costs and expenses $1,794,800; and net loss $254,800. Costs and expenses consisted of the following. Total Cost of goods sold Selling expenses Administrative expenses Variable Fixed $1.112.800 $618,000 $494,800 529.000 92.000 437,000 153,000 60,000 93,000 $1,794.800 $770.000 $1.024.800 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 $201,000 to total salaries of $36,015 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. 3. (a) Compute the break-even point in dollars for 2019. (Round contribution margin ratio to 4 decimal places eg, 0.2512 and final answer to 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 eg. 0.251 and final answers to decimal places, eg. 2,510.) Break-even point 1. $ Increase selling price Change compensation 2. $ 3. Purchase machinery Which course of action do you recommend? Alternative 1