Lima Manufacturing had a bad year in 2011. For the first time in its history it

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Lima Manufacturing had a bad year in 2011. For the first time in its history it operated at a loss. The company's income statement showed the following results from selling 82,700 units of product: Net sales $2,481,000; total costs and expenses $2,147,201; and net loss $-333,799. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,599,301 $1,292421 $306880 Selling expenses 423,000 75,900 347,100 Administrative expenses 124,900 52,300 72,600 $2,147,201 1,420,621 726,580 Management is considering the following independent alternatives for 2012. 1.Increase unit selling price 27% with no change in costs, expenses, and sales volume. 2.Change the compensation of salespersons from fixed annual salaries totaling $195,700 to total salaries of $36,900 plus a 7% 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 -Compute the break-even point in dollars for 2011 $ ___________(Round answers to 0 decimal places, e.g. 125. For computational of unit costs and contribution margin ratios, round to 4 decimal places, e.g. 10.2520. Round all other computations to 0 decimal places, e.g. 125.) Compute the break-even point in dollars under each of the alternative courses of action. (Round answers to 0 decimal places, e.g. 125. For computational of unit costs and contribution margin ratios, round to 4 decimal places, e.g. 10.2520. Round all other computations to 0 decimal places, e.g. 125.) 1. Increase selling price $ 2. Change compensation $ 3. Purchase machinery $ Which alternative is the recommended course of action? 1,2 or 3

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