A cost behaviour analysis indicates that 75% of the cost of goods sold is variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. (Use the CVP income statement format in calculating operating income.) Calculate the break-even point in total sales dollars and in units for 2022 . (Round contribution morgin per unit to 2 decimal places, eg. 1.25, contribution margin ratio to 1 decimal ploce, eg. 15.2\% and final answers to 0 decimal places, eg. 5,275.) Question Part Score Patricia has proposed a plan to get the partnership "out of the red" and improve its profitability. She feels that the quality of the product could be substantially improved by spending $0.20 more per unit on better raw materials. The selling price per unit could be increased to only $5.20 because of competitive pressures. Patricia estimates that sales volume will increase by 2.5%. Calculate the break-even point in total sales dollars and in units under the proposed plan. (Round contribution margin per unit and contribution margin ratio to 2 decimal places, eg. 15.25 or 15.25% and final answers to 0 decimal places, e.8. 5.275.) product could be substantially improved by spending $0.20 more per unit on better raw materials. The selling price per unit could be increased to only $5.20 because of competitive pressures. Patricia estimates that sales volume will increase by 25%. Calculate the break-even point in total sales dollars and in units under the proposed plan. (Round contribution margin per unit and contribution margin ratio to 2 decimal places, eg. 15.25 or 15.25% and final answers to 0 decimal places, eg. 5,275.) What effect would Patricia's plan have on the partnership's operating income and its break-even point in dollars? This plan would effect on the break-even point in units, but break-even point in sales dollars bece the operating income before tax from a John was a marketing major in university. He believes that the sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed the following plan as an alternative to Patricia's: (1) increase variable selling expenses to $0.59 per unit, (2) lower the selling price per unit by $0.20, and (3) increase fixed selling expenses by $32.800. John quoted an old marketing research report that said that sales volume would increase by 60% if these changes were made. Calculate John's break-even point in dollars and units. (Round contribution margin per unit and contribution margin ratio to 2 decimal places, eg. 15.25 or 15.25% and final answers to 0 decimal ploces, eg. 5.275.) Determine which plan should be accepted. Question Part Score Determine which plan should be accepted
