Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants scattered in locations throughout the world Mary manages the plant located in Des Moines, lowa, while Gary manages the plant in El Segundo, Calfornia 10% of ther base salary if the entire division meets or exceeds ts target profts for the year. The bonus is determined in March afier the company's annual report has been prepared and issued to stockholders Shorthy after the beginning of the new year, Mary received a phone call from Gary that went e this: Gary: How's it going, Mary? Mary: Fine, Gary How's it going with you? Gary: Greall just got the preliminary proft igures for the division for last year and we are within $80,270 or making the year's target profits Al we have to do pun a few strngs, and we1 be over the top, Mary: What do you mean? Gary: Wel one thing that wouid be easy to change is your estimate of the percentage completion of your Mary: Idon't know I can do that, Gary Those percentage completion figures are supplied by Tom ending work in process inventories Winthrop, my lead supervisor, who I have always trusted to provide us with good estimates Besides I have already sent the percentage completion fiqures to corporate headquarters much as we can to pul this bonus out of the hat. You may not want the bonus check but the rest of Gary: You can always tel them there was a mistake. Think about iR, Mary All of us managers are doing as us sure couid use it The final processing department in Mary's production facilty began the year with no work in process inventories During the year, 360.000 unts were transferred in from the prior processing department and 349,000 units were completed and sold Costs transferred in from the prior department totaled $73.440,000 No materials are added in the final processing department A total of $23,919,000 of conversion cost was ncurred in the final processing department during the year Required: 1. Tom Winthrop estimated that the units ending inventory in the final processing department were 25% complete with respect to the conversion costs of the final processing department If this estimate of the percentage completion is used, what would be the Cost of Goods Sold for the year? (Round your cost per unit to 2 decimal places Cost of goods sold 2 Does Gary Stevens want the estimated percentage completion to be increased or decreased? 0 Increased Decreased 3 What percentage compieion would result in increasing reported net operating inoome by $80.270 over the net operatng income that would be reported f the 25% figure were used? (Do not round your cost r unit calculations, Round your intermediate calculations to the nearest dollar amount and inal answer to the nearest whole percent