Phins Up$!$ just completed the $2023$ fiscal period $($January $1-$ December $31)$ and through management analysis and review of the income statement the following information was determined:

Sales Revenue of $$1,649,200$ based on sales of $235,600$ units.

Cost of Goods Sold totaled $$1,060,200.$

$75\%$ of COGS $($Cost of Goods Sold$)$ are variable.

Selling Expenses totaled $$421,000.$

$45\%$ of selling expenses are variable.

Administrative Expenses totaled $$198,300.$

$50\%$ of administrative expenses are variable.

Rounding and Calculation Instructions

Round all PER UNIT costs to $2$ decimals

FINAL break$-$even answers to the WHOLE unit and WHOLE dollar $($no decimals$).$

DO NOT Round the contribution margin ratio.

Because of the proposal below, You WILL NOT maintain the same percentages of variable vs$.$ fixed costs.

$**$ Use either Google Sheets or Excel $($recommended$)$ for all parts of this project. Required: formulas, functions and cell referencing throughout the project.

Part $1$ Using the information above prepare, in good form, a GAAP $($accrual basis$)$ income statement, determine net income $($loss$)$ and compute the break$-$even point in total sales dollars AND in units for $2023.$

Part $2$

Prepare a $2024$

Projected CVP income statement in Part $2($BOTH Plan A and Plan B$).$

PLAN A $-$ Ellie has proposed a plan to improve profitability in $2024$ from an analysis of $2023.$ Eillie believes the quality of the final product could be substantially improved by spending $$0\mathrm{.}14$ more per unit on higher quality raw materials. The selling price therefore should be increased by $$\mathrm{.}45($per unit$).$ Ellie would do a one$-$time sales$/$marketing promotion that would add $$40,000$ to fixed selling costs. This would result in a $15\%$ increase in sales volume. Compute the $2024$ projected net income based on Ellie's plan, the break$-$even point in units AND sales dollars.

$($DO NOT Round the contribution margin ratio.$)$

PLAN B $-$ Omar was a finance, sales and marketing major in college. Omar believes sales volume can be increased in $2024$ by using an intensive online advertising, social media promotional campaign and improved product packaging. Omar's sales & marketing focused changes will require the following financial costs; $(1)$ variable cost of goods sold would increase by $$\mathrm{.}13/$per unit with better packaging $(2)$ variable selling expenses increased by $$0\mathrm{.}35/$per unit due to sales commission incentives $(3)$ variable administrative expenses will increase by $$\mathrm{.}05/$per unit and $(4)$ and an increase of $$60,000$ in fixed selling costs due to a social influencer program. Omar believes this combination along with; $(1)$ a significant cut in fixed administrative costs by $45\%,(2)$ an increased selling price per unit of $$0\mathrm{.}68$ would $(3)$ increase sales volume $($quantity$)$ by $21\%$ if these changes were made. Compute the projected $2024$ net income under Omar's proposal, the break$-$even point in unit AND sales dollars.

$($DO NOT Round the contribution margin ratio.$)$

Part $3$

Which plan do you believe should be accepted and why? Using good written communication, completely and thoroughly explain your answer. Your score for this category will be based significantly on your persuasiveness and effectiveness to $$sell$$ your conclusion to executives in the company.