Question 11 of 13 - 75 The condensed income statement for the Elizabethand David partnership for 2022 is as follows Elizabeth and David Company Income Statement For the Year Ended December 31, 2020 $1.056,000 704,000 Sales (211.200 units) Cost of goods sold Gross profit Operating expenses 352,000 Selling $264,000 Administrative 134,200 398,200 Net loss $146.200) Question 11 of 13 =15 Net loss $146.200 A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 40% of the selling experts are variables Administrative expenses are $81.400 fixed. Compute the break-even point in total sales collars tor 2022. (Round Intermediate calculations to 2 decimal places, eg 15.25 and final answers to decimal places, eg 2,520.) Break-even point in dollars $ 1188000 Elizabeth 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 selling price per unit could be increased to only $5.25 because of competitive pressures. Elizabeth estimates that sales volume will increase by 25 Compute the net income under Elizabeth's proposal and the break-even point in dollars. (Round Intermediate calculations to 4 decimal places, eg. 15.2515 and final answers to 2 decimal places, es. 15.25) Amount Net income $ Break-even point $ Question 11 of 13 -75 David 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 Elizabeth's: (1) increase variable selling expenses to $0.575 per unit. (2) lower the selling price per unit by $0.25, and (3) increase fixed selling expenses by $44.880, David quoted an old marketing research report that said that sales volume would increase by 60% if these changes were made. Compute the net income under David's proposal and the break-even point in dollars. (Round intermediate calculations to 3 decimal places, es. 15.251 and final answers to decimal places, eg. 2,520) Amount Net income s Break-even point S Which plan should be accepted