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Current Attempt in Progress The condensed budgeted income statement for the Karen and Paul partnership for 2022 is as follows: A cost behaviour analysis indicates

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Current Attempt in Progress The condensed budgeted income statement for the Karen and Paul partnership for 2022 is as follows: 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 decimol ploces, eg. 1.25, contribution margin rotio to 1 dedimal ploce, eg. 15.2\% and final anowers to 0 decimal places, eg. 5,275.) Karen 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 50.30 more per unit on better raw materials. The selling price per unit could be increased to only $5.30 because of competitive pressures. Karen 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 ploces, e.8. 15.25 or 15.25% and final answers to 0 decimal ploces, eg. 5.275.) What effect would Karen'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 It the operating income before tax from a break-even point in sales dollars beca What effect would Karen'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 doflars beca It the operating income before tax from a of 5 to an Paul 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 Karen's: (1) increase variable seiling expenses to $0.54 per unit, (2) lower the selling price per unit by $0.30, and (3) increase fixed selling expenses by $41.600, Paul quoted an oid marketing research report that said that sales volume would increase by 60% if these changes were made: Calculate Paul's break-even point in dollars and units. (Round contribution margin per unit and contribution margin ratio to 2 decinal ploces, eg. 15.25 or 15.25% and final answers to 0 decimal ploces, eg. 5.275.) Determine which plan should be accepted

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