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The condensed budgeted income statement for the Phan and Nguyen partnership for 2020 is as follows: PHAN AND NGUYEN LLP Income Statement Year Ending December

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The condensed budgeted income statement for the Phan and Nguyen partnership for 2020 is as follows: PHAN AND NGUYEN LLP Income Statement Year Ending December 31, 2020 Sales (240,000 units) $1,200,000 Cost of goods sold 800,000 Gross profit 400,000 Operating expenses $280,000 Administrative 150,000 430,000 Net loss $(30,000) Selling A cost behaviour analysis indicates that 75% of the cost of goods sold is variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. (Use the CVP income statement format in calculating profits.) (a) Your answer has been saved. See score details after the due date. Calculate the break-even point in total sales dollars and in units for 2020. (Round contribution margin per unit to 1.25, contribution margin ratio to 1 decimal place, eg. 15.2% and final answers to decimal places, e.g. 5,275.) Break-even point in sales $ 1285227 Break-even point in units 257045 Phan 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 $0.25 more per unit on better raw materials. The selling price per unit could be increased to only $5.25 because of competitive pressures. Phan estimates that sales volume will increase by 2594 Calculate the break-even point in total sales dollars and in units under the proposed plan. (Round contribution margin per unit and contribution margin ratio to 2 decimal places, eg, 15.25 or 15.25% and final answers to decimal places, eg 5,275.) Break-even point in sales $ Break-even point in units What effect would Phan's plan have on the partnership's profits and its break-even point in dollars? This plan would effect on the break-even point in units, but break even point in sales dollars It the operating profit before tax from a of $ to a V ofs

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