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Your answer is partially correct. Try again. Peri has proposed a plan to get the partnership out of the red and improve its profitability.

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Your answer is partially correct. Try again. 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 spend*lg $0.25 more per unit on better raw materials. The selling price per unit could be increased to only $5.25 because of competitive pressures. Peri estimates that sales volume will increase by 30%. What effect peris plan have on the profits and the break-even point in dollars of the partnership? Break-even point Amount 87,900 342550 Attempts: 1 of 2 used Broadening Your (Part Level Paul was a marketing major in college. He believes that volume can be increased only by intensive advertising and prornotional campaigns. therefore proposed the following plan as an alternative to (I) increase variable selling to $0.59 per unit, (2) 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 61% if these changes were made. What effect would Paul's plan have on the proms and the break-even point in dollars of the partnership? Break-even Attempe: O of 2 used

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