Midlands Inc. had a bad year in 2019. For the first time in itshistory, it operated at a loss. The company’s income statementshowed the following results from selling 75,000 units of product:net sales $1,500,000; total costs and expenses $1,620,000; and netloss $120,000. Costs and expenses consisted of the following.

	Total	Variable	Fixed
Cost of Goods Sold	$962,000	$451,000	$511,000
Selling Expenses	510,000	91,000	419,000
Administrative Expenses	148,000	58,000	90,000
	$1,620,000	$600,000	$1,020,000

Management is considering the following independent alternativesfor 2020.
1.Increase unit selling price 25% with no change in costs andexpenses.

2.Change the compensation of salespersons from fixed annualsalaries totaling $205,000 to total salaries of $35,025 plus a 5%commission on net sales.

3.Purchase new high-tech factory machinery that will change theproportion between variable and fixed cost of goods sold to50:50.

(a) Compute the break-even point in dollars for2019. (Round contribution margin ratio to 4 decimalplaces e.g. 0.2512 and final answer to 0 decimal places, e.g.2,510.)

(b) Compute the break-even point in dollars undereach of the alternative courses of action for 2020.(Round contribution margin ratio to 3 decimal placese.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	$