Fredonia Inc. had a bad year in 2013. For the first time in its history, it oper

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Fredonia Inc. had a bad year in 2013. For the first time in its history, it operated at a loss. The company

Fredonia Inc. had a bad year in 2013. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 77,100 units of product: Net sales $1,503,450; total costs and expenses $1,738,200; and net loss $234,750. Costs and expenses consisted of the following. Management is considering the following independent alternatives for 2014. Increase unit selling price 25% with no change in costs and expenses. Change the compensation of salespersons from fixed annual salaries totaling $199,700 to total salaries of $39,900 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. Compute the break-even point in dollars under each of the alternative courses of action.

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