Rayburn Co. manufactures and sellsglow in the darkphone cases.TerryAndreikowski, the president of the Rayburn Co., has a hard time understanding the accounting in his firm. Yesterday morning, he was very confused when he received mail from his accountant, JuliaOmberg. She sent him the following income statements:

M les revenue $ 25,000 $ 31500 Best of goods sold 10,000 15,000 G'ess profit 15,000 22,500 Rant expense 1,500 1,500 Wages expense 3,500 5, 000 Shipping emense 1,250 1, B75 Utilitiesexpense 7'50 750 Advertisng expense 750 375 Ineurenee expense 400 (heretlng Imam 10503 15100 a} Assume Julia's role. Explain to Terry why his use of operating income per mascot was in error. it} Terry plans to sell it'll} glow in the dark phone cases next month. How much operating income can Terry expect to earn next month if he realizes his plaiuted sales? c} Terry was not at all happy with the projected income statement you showed him for a sales level of Silt] cases. Now he wants to know how many glow in the dark cases he needs to sell to earn $3300 in operating income. As a safety net. he would like to know how many mascots he will need to sell to break even. d} Terry was evaluating 2 additional options to increase the number of cases sold next month. The options are as follows: ptzion l htcrease sales by advertisin_ decrease the selling price - social media \"1% purchase a package of 12 a- r a decreased selling price wil tver the next month, to -'ncrease the number of = ., -.old from Still to l,llt'}. - e a-s wt increase e number of cases sold from Still to 96!]. Which plan should Terry implement? At what level of sales would he he indifferent between the two plans? e} Right aer Terry completed an income projection for 1,200 glow in the dark phone cases. his supplier informed him of a 20% increase in cost of goods sold, effective immediately Terry knows that he cannot pass the entire increase on to his customers, but he thinks he can pass on half of the I'li: increase while suffering only a 5% decrease in units sold. Should Terry respond to the increase in cost of goods sold with an increase in price? 1'] Please refer back to the original information. Tony has decided to add sparkly laptop cases to his product line. He has found a supplier who will provide the sparkly laptop cases for $32, and he plans to sell them for 555. They are premium quality cases. All other variable costs currently incurred for selling glow in tlte dark phone cases will be incun'ed for selling sparkly laptop cases at the same rate. Additional xed costs of $350 per month will be incurred. He believed he can sell one laptop case for every 3 phone cases. How many sparkly laptop cases and glow in the dark phone cases will Ten-y need to sell each month in order to break even