Reducing reliance on human Question Completion Status: reduce fixed costs and increase reduce variable costs and increase fixed costs. have no effect on the relative proportion of fixed and variable costs make the company less susceptible to economic swings. QUESTION 19 $ 1,800,000 An income statement for Paul Houston Company is presented below. Paul Houston Company Income Statement For the Year Ended December 31, 2021 Sales (300,000 units) Variable Expenses: Cost of Goods Sold $ 900,000 Selling Expenses 225,000 Administrative Expense 150,000 Contribution Margin Fixed Costs: Cost of Goods Sold 300,000 Selling Expenses 242,400 Administrative Expense 100,000 Net Loss 1,275,000 525,000 642,400 $_( 117,400) INSTRUCTIONS (MUST SHOW ALL COMPUTATIONS) 1. Compute the break-even in total sales dollars and in units for 2021. 5 points The selling price per unit would be increased by $0.35. The sales volume would increase by 25% 2. Paul has proposed a plan to get the enterprise on a profitable level. He proposes to improve the quality of the product by spending $0.30 more on raw materials. How would this proposal affect profits and break-even in dollars? 15 points 3. Houston want to improve profits via marketing, i.e., advertising and promotions. His plan is to increase selling expense by So 15. lower the selling price by S0.35 per unit, and increase fixed selling expenses by S40.000 More importantly, Houston believes the sales volume would increase by 60% if these changes are made How would Houston's proposal affect profits and break even in dollars? 15 points 4. Which plan do you recommend and why? 7 points E TT TT Paragraph y Anal 3 (12pt) ME % DO T' T, fx Mashups - 4 @ @ I HTML CSS Click Save and Submit save and submit. Click Save All Answers to save ak answers