Expand Your Critical Thinking 22-02 (Part Level Submission) The condensed income statement for the Cullumber and Paul partnership for 2020 is as follows. Cullumber and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (270,000 units) Cost of goods sold Gross profit Operating expenses Selling Administrative $1,350,000 900,000 450,000 $315,000 175,500 490,500 $(40,500) Net loss A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variab (c) Your answer is partially correct. Try again. Paul 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 Cullumber's: (1) increase variable selling expenses to $0.59 per unit, (2) lower the selling price per unit by $0.25, and (3) increase fixed selling expenses by $40,000. Paul quoted an old marketing research report that said that sales volume would increase by 60% if these changes were made. what effect would Paul's plan have on the profits and the break-even point in dollars of the partnership? (Round intermediate calculations to 4 decimal places, e.g. 15.2515 and final answers to O decimal places, e.g. 2,520.) Effect Amount Profit Increase Break-even point Increase