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Compute net income under Donald's proposal and the break-even point in sales dollars. How do you get this answer. Net income:_________________________ Break even point in
Compute net income under Donald's proposal and the break-even point in sales dollars. How do you get this answer.
Net income:_________________________
Break even point in sales :_______________
A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 42% of the selling expenses are variable. Administrative expenses are $92,000 fixed. Helen has proposed a plan to get the partnership "out of the red" and improve its prafitability she fee's that the guality of the product could by substantially improved by spending 50.37 more per unit on better raw materials. The uirit selting pricit could bet increased to 5525 . Helen estimates that sales volume would increase by 25%. Conwutenet income under Helens proposal and the break-even point in sales dollars. (Round intermediate colculations to 2 decimal ploces, eg. 15.25 and break even point in sole to 2 decimal places, eg. 2,520.25.) Vonald was a marketing major in college. He believes that sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed the following plan as an alternative to Helen's: (1) increase unit variable selling old marketing research report that said that sales volume would increase by 60% if these changes were madeStep by Step Solution
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