The condensed income statement for the Sharon and Anthony partnership for 2022 is as follows. Sharon and Anthony Company Income Statement For the Year Ended December 31, 2020 Sales ( 283 200 units 51.416.000 Cost of goods sold 944.000 Gross profit 472.000 Operating expenses Selling $ 354000 Administrative 179.950 533.950 Net loss S[ 61.950) 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 $ 109.150 fred Compute the break-even point in total sales dollars for 2022. (Round intermediate calculations to 2 decimal places, eg 15.25 and final answers to decimal places. Es 2520 Break-even point in dollars $ Sharon 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 Sharon estimates that sales volume will increase by 25%. Compute the net income under Sharon's proposal and the break-even point in dollars (Round intermediate calculations to 4 decimal places, eg. 15.2515 and final answers to 2 decimal places, s. 15.25) Amount Net income $ Break-even points Anthony 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 Sharon's: (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 $ 60,180. Anthony 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 Anthony's proposal and the break-even point in dollars. (Round intermediate calculations to 3 decimal places.es. 15.251 and final answers to decimal places, es 2,520.) Amount Net income $ Break-even point $ Anthony 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 Sharon's: (1) Increase variable selling penses to $0 575 per unit. (2) lower the selling price per unit by $0.25, and (3) Increase fixed selling expenses by $ 60,180 Anthony 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 Anthony's proposal and the break-even point in dollars. (Round intermediate calculations as to 3 decimal places 5. 15.251 and final answers to decimal places, es 2,520) Amount Net Income $ Break-even point s Which plan should be accepted? should be accepted
