3.20 (LO 1, 5) Bwakeven analysis; multiproduct CVP analysis Abado Proles provides testing services to school districts that wish to assess students' reading and mathematical abilities. last year Abado evaluated 60,000 math tests and 20,000 reading tests. An income statement for last year follows. Math Testing Reading Testing Total Per Unit Total Per Unit Total Company Sales revenue $1,200,000 $20 $720,000 $36 $1,920,000 Variable expenses 840,000 360,000 L3 1,200,000 Contribution margin $ 360,000 $ 6 $360,000 $18 720,000 Fixed expenses 360.000 Operating income $ 360,000 Required a. What is Abado's breakeven point in sales dollars? b. In an effort to raise the demand for reading tests, managers are planning to lower the price from $36 per test to $20 per test, the current price of the math test. They believe that doing so will increase the demand for reading tests to 60,000. Prepare a contribution format income statement reecting Abado's new pricing and demand structure. c. What will be Abado's breakeven point in sales dollars if this change is implemented? Do you recommend that Abado make the change