*pleas explain the 2 points and how to get the numbrs, i need it with detiles.

The condensed income statement for the Terri and Jerry partnership for 2008 is as follows: Terri and Jerry Company Income statement For the year ended December 31, 2008

Sales (200,000 units) $1,200,000 Cost of goods sold 800,000 Gross Profit &n bsp; 400,000

Selling expenses $280,000 Administrative Expenses 160,000 440,000 Net loss &nbs p; (40,000)

A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 50% of the selling expenses are variable, and 25% of the administrative expenses are variable.

FOUND : Terri has proposed a plan to get the partnership out of the red and improve its profitability. She feels the quality of the product could be substantially improved by spending $0.25 more per unit on better raw materials. The selling price per unit could be increased only $6.25 because of competitive pressures. Terri estimates that sales volumes will increase by 30%. What effect would Terris plan have on the profits and the break even point in dollars of the partner ship? (Round the contribution margin ratio to two decimal places.) (c) Jerry was a marketing major in college. He believes that sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed the following plan as an alternative to Terris. (1) Increase variable selling expenses to $0.79 per unit, (2) lower the selling price per unit by $0.30, and (3) increase fixed selling expenses by $35,000. Jerry quoted an old marketing research report that said that sales volumes would increase by 60% if these changes were made. What effect would Jerrys plan have on the profits and the break-even point in dollars of the partnership?