Question: Please answer the question under Your answer is incorrect. Robert was a marketing major in college. He believes that sales volume can be increased only
Please answer the question under Your answer is incorrect.




Robert 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 Linda's: (1) increase unit variable selling expenses to $0.530, (2) lower the unit selling price by $0.30, and (3) increase fixed selling expenses by $43,000. Robert quoted an old marketing research report that said that sales volume would increase by 60% if these changes were made. Compute net income under Robert's proposal and the break-even point in sales dollars. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 2,520.) eTextbook and Media Solution Attempts: unlimited The condensed income statement for the Linda and Robert partnership for 2025 is as follows. 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 $92,800 fixed. Compute the break-even point in sales dollars and in sales units for 2025. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 2,520.) Break-even point in sales dollars \$ Break-even point in units units Linda 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 unit selling price could be increased to $5.25. Linda estimates that sales volume would increase by 25%. Compute net income under Linda's proposal and the break-even point in sales dollars. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and break-even point in sale to 2 decimal places, e.g. 2,520.25.)
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