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An income statement for James & Justice Enterprises is presented below: Compute the break-even in total sales dollars and in units for 2016. Justice has
An income statement for James & Justice Enterprises is presented below: Compute the break-even in total sales dollars and in units for 2016. Justice has proposed a plan to get the enterprise on a profitable level. He proposes to improve the quality of the product by spending $0.30 more on raw materials. The selling price per unit would be increased to by $0.35. The sales volume would increase by 25%. How would this proposal affect profits and break-even in dollars? James want to improve profits via marketing, i.e., advertising and promotions. His plan is to increase selling expense by $0.15, lower the selling price by $0.35 per unit, and increase fixed selling expenses by $40,000. More importantly, James believes the sales volume would increase by 60% if these changes are made. How would James' proposal affect profits and break-even in dollars
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