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Hi! can you please help me to answer the box that I didn't get? Thanks in advance! The condensed budgeted income statement for the Phan
Hi! can you please help me to answer the box that I didn't get? Thanks in advance!
The condensed budgeted income statement for the Phan and Nguyen partnership for 2020 is as follows: PHAN AND NGUYEN LLP Income Statement Year Ending December 31, 2020 Sales (240,000 units) $1,200,000 Cost of goods sold 800,000 Gross profit 400,000 Operating expenses Selling $280,000 Administrative 150,000 430,000 Net loss $(30,000) 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 profits.) Your answer is partially correct. Try again. Nguyen 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 Phan'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. Nguyen quoted an old marketing research report that said that sales volume would increase by 60% if these changes were made. Calculate Nguyen's break-even point in dollars and units. (Round contribution margin per unit and contribution margin ratio to 2 decimal places, e.g. 15.25 or 15.25% and final answers to o decimal places, e.g. 5,275.) Break-even point in sales 1657912 Break-even point in units 349220 LINK TO TEXT LINK TO TEXT LINK TO TEXT X Your answer is incorrect. Try again. Determine which plan should be accepted. Nguyen's plan should be acceptedStep by Step Solution
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