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 79,000 units of product: net sales $1,580,000; total costs and expenses $1,968,000; and net loss $388,000. costs and expenses consisted of the following. total variable fixed cost of goods sold $1,300,000 $796,000 $504,000 selling expenses 520,000 94,000 426,000 administrative expenses 148,000 58,000 90,000 $1,968,000 $948,000 $1,020,000 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 salaries totaling $200,000 to total salaries of $43,000 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. (a) compute the break-even point in dollars for 2016. (round contribution margin ratio to 2 decimal places e. g. 0.25 and final answer to 0 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 margin ratio to 4 decimal places e. g. 0.2512 and final answers to 0 decimal places, e. g. 2,510.) 1. increase selling price 2. change compensation 3. purchase machinery which course of action do you recommend?