I have this exercise to make and I am stuck in part B and C: The exercise is as fallows:

The condensed statement of income of the Peri & Paul partnership for the year 2017 is as follows: PERI & PAUL COMPANY Income Status For the year ended December 31, 2017

Sales (240,000 units) $1,200,000

Cost of Goods Sold (COGS) 800,000

Gorss Profit 400,000

Operational Cost:

selling expenses $280,000

Administrative expenses $150,000

Total: 430,000

Net loss ($30,000)

	Total	Per unit
Sales (240,000)	$1,200,000	$5
Variable cost	$800,000	$3.33
Contribution margin	400,000	$1.67
Fixed Cost	$430,000
Net loss	-$30,000

 A. Compute the break-even point (BEP-) of sales in units and dollars for the year 2017. 

Break even point:

	Total	Per unit
Sales (250,000)	$1,250,000	$5
Variable cost	$800,000	$3.2
Contribution margin	$430,000	$1.80
Fixed Cost	$430,000
Net Income	$0

B. Peri has proposed a plan to get society out of losses and improve its profitability. She believes that the quality of the product could be greatly improved by paying $0.25 more for each unit of a better direct material. The selling price per unit could only be increased to $5.25 per unit, due to competitive pressure. Peri-estimates that the volume of sales could increase 25%. What would be the effect of the changes planned by Peri's plan on the break-even point in dollars and the company's earnings? (Round the contribution margin ratio to two decimal places.)'

Note: this is where I am stuck. This is what I have so far:

The Price that peri wants to use per product to improve its quality is $5.25 The contribution margin at the break-even point is 1.80 per unit. This gives a 0.34% contribution margin ratio. On the contrary, when it is at $5 it's 0.36% However. With the data provided so far, if we raise the product to $5.25, making a sale of 250,000 (units) we would have a result of $82,500 in profit. When you do the math, this is actually a .20% increase in earnings and not a 25% peri-estimate.

C. Paul's concentration in high school was in marketing. He believes that sales volume can only be increased by an intensive advertising campaign, so he proposed the following plan as an alternative to Peri's: (1) increase variable selling expenses to $0.59 per unit; (2) reduce the selling price per unit by $0.25; and (3) increase fixed selling expenses by $40,000. Paul quoted an old marketing report that said sales would increase by 60%. If these changes were made, what would be the effect of the proposed changes in Paul's plan on the breakeven point in dollars and the partnership's earnings?

Note: I have not yet made anything on this part because I am not sure how is done. Please help on this part too.