The condensed income statement for the Elizabeth and William partnership for $2025$ is as follows.

Elizabeth and William Company

Income Statement

For the Year Ended December $31,2025$

Operating expenses

A cost behavior analysis indicates that $75\%$ of the cost of goods sold are variable and $40\%$ of the selling expenses are vable

Administrative expenses are $$94,900$ fixed.

$($a$).$

$($b$)$

$($c$)$

William was a marketing major in college. He believes that sales volume can be increased only by intensive advertising and

promotional campaigns. He therefore proposed the following plan as an alternative to Elizabeth's: $(1)$ increase unit variable selling

expenses to $$0\mathrm{.}630,(2)$ lower the unit selling price by $$0\mathrm{.}30,$ and $(3)$ increase fixed selling expenses by $$50,000.$ William quoted an

old marketing research report that said that sales volume would increase by $62\%$ if these changes were made.

Compute net income under William's proposal and the break$-$even point in sales dollars. $($Round intermediate calculations to $2$

decimal places, e$.$g$.15\mathrm{.}25$ and final answers to $0$ decimal places, e$.$g$.2,520.)$

Net income

$

Break$-$even point in sales $

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