Problem 6-1A Midlands Inc. had a bad year 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 77,000 units of product: net $1,540,000; total costs and expenses $1,656,000; and net loss $115,000. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $904,000 $465,090 $519,000 Seling expenses 521,000 93,090 420,000 Administrative expenses 151,000 58,000 93,000 $1.656,000 $616,000 $1,040,000 Management is considering the following independent alternatives for 2017, 1, Increase unit selling price 25%% with no change in costs and expenses, 2. Change the compensation of salespersons from fixed annual selaries totaling $190,000 to total salaries of $38,000 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 2016. (Round contribution margin ratio to 2 decimal places e.p. 0.25 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 2017. (Round contribution mangia mitis to 4 decimal places e.g. 0.2512 and final answers decimal places, c.g. 2,510.) Break even point 1. Increase selling price 2. Change compensation 3. Purchase machinery Which course of action do you recommend