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Peri has proposed a plan to get the partnership out of the redI and improve its profitability. She feels that the qualityr of the product

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Peri has proposed a plan to get the partnership "out of the red\"I and improve its profitability. She feels that the qualityr of the product could be substantially improved lay spending $6.25 more per unit on better raw materials. The selling price per unit could be increased to only.r $5.25 because of competitive pressures. Peri estimates that sales 1.roiurne will increase by 25 93. What effect would Peri's plan have on the prots and the break-even point in dollars oi the partnership? [Round the contribution margin ratio to two decimal places.)

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