Question: Hello. I cannot figure out the break even in dollars on this question. Expand Your Critical Thinking 18-02 The condensed income statement for the Oriole

Hello. I cannot figure out the break even in dollars on this question.


Expand Your Critical Thinking 18-02 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 W 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. Your answer is partially correct. Try again. Oriole has proposed a plan to get the partnership \"out of the red" and improve its protability. 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 a decimal places, e.g. 2,520.) Amount $ Brea keven point 3:: LINK To TEXT [2] Your answer is incorrect. Try again. Paul 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 Oriole's: (1) increase variable selling expenses to $0.59 per unit, (2) lower the selling price per unit by $0.25, and (3) increase xed selling expenses by $49,000. Paul 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 Paul's proposal and the break-even point in dollars. (Round intermediate calculations to 4 decimal places, e.g. 15.2515 and nal answers to 0 decimal places, e.g. 2,520.) Amount X Net income :1 $ X . Brea keven point $E]
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