CT$5\mathrm{.}2$ The condensed income statement for the Peri and Paul partnership for $2022$ is as follows.Peri and Paul Company Income Statement For the Year Ended December $31,2022$Sales $(240,000$ units$).$ $$1,200,000$Cost of goods sold. $800,000$Gross profit $400,000$Operating expensesSelling. $$300,000$Administrative $152,500452,500$Net loss. $ $(52,500)$A cost behavior analysis indicates that $75\%$ of the cost of goods sold are variable and $40\%$ of the selling expenses are variable. Administrative expenses are $$92,500$ fixed.Instructions$($Round to nearest unit, cent, and percentage, where necessary. Use the CVP income statement format in computing net income.$)$A$)$ Compute the break$-$even point in sales dollars and in sales units for $2022.$B$)$ Peri has proposed a plan to get the partnership out of the red and improve its profitability. She feels that the quality of the product could be substantially improved by spending $$0\mathrm{.}32$ more per unit on better raw materials. The unit selling price could be increased to $$5\mathrm{.}25.$ Peri estimates that sales volume would increase by $25\%.$ Compute net income under Peris proposal and the break$-$even point in sales dollars.C$)$ Paul was a marketing major in college. He believes sales volume can only be increased by intensive advertising and promotional campaigns. He$,$ therefore, proposed the following plan as an alternative to Peris: $(1)$ increase unit variable selling expenses to $$0\mathrm{.}575,(2)$ lower the unit selling price by $$0\mathrm{.}25,$ and $(3)$ increase fixed selling expenses by $$51,000.$ Paul quoted an old marketing research report that said that sales volume would increase by $60\%$ if these changes were made. Compute net income under Pauls proposal and the break$-$even point in sales dollars.D$)$ Which plan should be accepted? Explain your answer.