The condensed income statement for the Lisa and Daniel partnership for 2022 is as follows.

Lisa and Daniel Company Income Statement For the Year Ended December 31, 2020
Sales (312,000 units)				$1,560,000
Cost of goods sold				1,040,000
Gross profit				520,000
Operating expenses
Selling		$390,000
Administrative		198,250
				588,250
Net loss				$(68,250	)

A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 40% of the selling expenses are variable. Administrative expenses are $120,250 fixed.

Compute the break-even point in total sales dollars for 2022. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 2,520.)

Break-even point in dollars

$enter the break-even point in dollars: ______________

Lisa 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 $0.32 more per unit on better raw materials. The selling price per unit could be increased to only $5.25 because of competitive pressures. Lisa estimates that sales volume will increase by 25%. Compute the net income under Lisa's proposal and the break-even point in dollars. (Round intermediate calculations to 4 decimal places, e.g. 15.2515 and final answers to 2 decimal places, e.g. 15.25.)

		Amount
Net income		$enter the net income amount in dollars: ___________
Break-even point		$enter the break even point in dollars: ____________

Daniel 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 Lisas: (1) increase variable selling expenses to $0.575 per unit, (2) lower the selling price per unit by $0.25, and (3) increase fixed selling expenses by $66,300. Daniel 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 Daniels proposal and the break-even point in dollars. (Round intermediate calculations to 3 decimal places, e.g. 15.251 and final answers to 0 decimal places, e.g. 2,520.)

		Amount
Net income		$enter the net income amount in dollars: _______________
Break-even point		$enter the break even point in dollars: _______________

Which plan is better among Lisa and Daniel?: _____________________