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what is the answer of part c. The condensed income statement for the Michelle and Anthony partnership for 2022 is as follows. Michelle and Anthony
what is the answer of part c.
The condensed income statement for the Michelle and Anthony partnership for 2022 is as follows. Michelle and Anthony Company Income Statement For the Year Ended December 31, 2022 Sales (300,000 units) $1.500.000 Cost of goods sold 1,040,000 Gross profit 460,000 Operating expenses Selling $350,000 Administrative 154,200 504.200 Netloss $144.200) A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 42% of the selling expenses are variable Administrative expenses are $91.200 fixed (a) Your answer is correct Compute the break-even point in sales dollars and in sales units for 2022. (Round intermediate calculations to 2 decimal places, es. 15.25 and final answers to decimal places, es 2,520.) $ 5630000 1 Break-even point in sales dollars 326000 units Break-even point in units (b) Your answer is correct Michelle 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 $0.27 more per unit on better raw materials. The unit selling price could be increased to $5.25. Michelle estimates that sales volume would increase by 25% Compute net income under Michelle's proposal and the break-even point in sales dollars. (Round intermediate calculations to 2 decimal places, s. 15.25 and break-even point in sale to 2 decimal places, 68.2,520.25.) Amounts Net Income $ 75800 Break-even point in sales 1731875 eTextbook and Media Attempts: 2 of 3 used 10 Anthony was a marketing major in college. He belleves that sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed the following plan as an alternative to Michelle's (1) Increase unit variable selling expenses to 80.550. (2) lower the unit selling price by $0 20, and (3) Increase find selling expenses by $62.000 Anthony quoted an old marketing research report that sold that sales volume would increase by 60% if these changes were made. Compute net Income under Anthony's proposal and the break-even point to sales dollart (Round intermediate calculations to 2 clecimal places, es. 15.25 and final answers to decimal places, es 2,520) Amounts Net Income $ Break even point in sales $ Step by Step Solution
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