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please solve A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 42% of the selling expenses are variable.
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A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 42% of the selling expenses are variable. Administrative expenses are $91.600 fixed. Barbara has proposed a plan to get the partnership "out of the red" and improve its profitability. She feels that the quality of the product could be substantially improved by spending $0.32 more per unit on better raw materials. The unit selling price could be increased to $5.25. Barbara estimates that sales volume would increase by 25%. Compute net income under Barbara's proposal and the break-even point in sales dollars. (Round intermediate caiculations to 2 decimal places, es, 15.25 and break-even point in sale to 2 decimal places, eg. 2,520.25.) Step by Step Solution
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