The condensed income statement for the Oriole and Paul partnership for 2020 is as follows.

Oriole and Paul Company Income Statement For the Year Ended December 31, 2020
Sales (300,000 units)				$1,500,000
Cost of goods sold				960,000
Gross profit				540,000
Operating expenses
Selling		$350,000
Administrative		232,500
				582,500
Net loss				$(42,500	)

A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable.

The condensed income statement for the Oriole and Paul partnership for 2020 is as follows. Oriole and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (300,000 units) $1,500,000 Cost of goods sold 960,000 Gross profit 540,000 Operating expenses Selling $350,000 Administrative 232,500 582.500 Net loss $(42,500) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% 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, e.g. 15.25 and final answers to O decimal places, e.g. 2,520.) Break-even point in dollars $ 1,618,056 i eTextbook and Media Attempts: unlimited Your answer is partially correct. Oriole 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. Oriole estimates that sales volume will increase by 25%. Compute the net income under Oriole's proposal and the break-even point in dollars. (Round intermediate calculations to 4 decimal places, e.g. 15.2515 and final answers to O decimal places, e.g. 2,520.) Amount Net income $ Break-even point $ 1,698,958 i eTextbook and Media Save for Later Attempts: unlimited Submit Answer (b)