a. Present a cost-profit-volume analysis that shows the effect of adding the $8,500 annual premium to the companys fixed costs by showing current and revised CVP Income Statements. Include a column to the right of each income statement where each line item is expressed as a percentage of sales (called a common size income statement). b. Visualize the changes to net income in a chart.

c. Advise the company using your quantitative support and qualitative. reasoning as to whether the company should purchase the insurance.

A-Float Pools Company Income Statement (Pools Maintenance Div.) For the Year Ended December 31, 2022 In
Sales (2,000 clients)		$1,100,000
Cost of Services		627,000
Gross profit		$473,000
Operating expenses
Selling	$165,000
Administrative	$225,000	$390,000
Net Income		$83,000

a. Present a cost-profit-volume analysis that shows the effect of adding the $8,500 annual premium to the company's fixed costs by showing current and revised CVP Income Statements. Include a column to the right of each income statement where each line item is expressed as a percentage of sales (called a common size income statement). b. Visualize the changes to net income in a chart. c. Advise the company using your quantitative support and qualitative. reasoning as to whether the company should purchase the insurance. A-Float Pools Company Income Statement (Pools Maintenance Div.) For the Year Ended December 31, 2022 In Sales (2,000 clients) Cost of Services Gross profit $1,100,000 627,000 $473,000 Operating expenses Selling $165,000 Administrative $225,000 $390,000 Net Income $83,000