PRINTER VERSION BACK NEXT 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 77,000 units of product: net sales $1.540,000; total costs and expenses $1,939,000; and net loss $399,000. Costs and expenses consisted of the following Total Fixed Cost of goods sold Selling expenses Administrative expenses $1,278,800 511,200 149,000 $1,939,000 Variable $778,000 90.000 50,000 $924,000 $500,800 421,200 93,000 $1,015,000 Management is considering the following independent alternatives for 2020 1. Increase unit selling price 20% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $198,000 to total salaries of $45,015 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 a decimal places 0.g. 0212 and final answer to o decimal places, 6.0.2,510.) 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.. 0.251 and Final answers to decimal places, e.g. 2,510.) Break-even point 1. Increase selling price ve 2. Change compensation CALCIATOR 4 BLACK PRINTER VERSION NEX 1. Increase unit selling price 20 % with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $198,000 to total salaries of $45,015 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 a decimal places eg. 0.25 12 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.o. 0.251 and final answers to o 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? Click if you would like to show Work for this question: Doen Show Work