The condensed income statement for the Carla Vista and Paul partnership for 2020 is as follows. Carla Vista and Paul Company Income Statement For the Year Ended December 31, 2020 Salas (270,000 units $1,350,000 Cost of goods sold 900,000 Gross profit 450,000 Operating expenses Selling $270,000 Administrative 189.000 459,000 Net loss $19.000 A cost behavior analysis indicates that 75% of the cost of goods sold are variable 4296 of the selling expenses are variable, and 4056 of the administrative expenses are variable (a) Your answer is correct. Compute the break-even point in total sales dollars for 2020. Round intermediate calculations to 2 decimal places, eg 15.25 and final answers to decimal places, eg 2,520) Break-even point in dollars S 1375000 e Textbook and Media Attempts: unlimited (b) Your answer is correct Carla Vista 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. Carla Vista estimates that sales volume will increase by 256. Compute the net income under Carla Vista's proposal and the break-even point in dollars. (Round intermediate calculations to 4 decimal places, eg. 15.2515 and final answers to decimal places, eg. 2520.) Amount Nat income S 112500 Break-even point S 1443750 Paul was a marketing major in college. He believes that sales volume can be increased only by intensive advertising and promotional campaigns. He therafora proposed the following plan as an alternative to Carla Vista's: (1) increase variable selling expenses to $0.59 par unit. (2) lower these ing price per unit by $0.25, and (3) increase fixed selling expenses by $46,000. Paul 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 Paul's proposal and the break-even point in dollars. (Round intermediate calculations to 4 decimal places, eg: 15.2515 and final answers to decimal places, es 2.520.) Amount Net income | $ $ Break-even point