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* 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 O decimal places, e.g. 2.520.) Net income Amounts Break-even point in sales $ 2.777.210 The condensed income statement for the Linda and Robert partnership for 2025 is as follows. Operating expenses Selling Linda and Robert Company Income Statement For the Year Ended December 31, 2025 Sales (270,000 units) $1,350,000 Cost of goods sold 900,000 Gross profit 450,000 Administrative Net loss 146,060 $315,000 163,000 478,000 $(28,000) 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.

* 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 O decimal places, e.g. 2.520.) Net income Amounts Break-even point in sales $ 2.777.210 The condensed income statement for the Linda and Robert partnership for 2025 is as follows. Operating expenses Selling Linda and Robert Company Income Statement For the Year Ended December 31, 2025 Sales (270,000 units) $1,350,000 Cost of goods sold 900,000 Gross profit 450,000 Administrative Net loss 146,060 $315,000 163,000 478,000 $(28,000) 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.

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter18: Cost-volume-profit Analysis (cvp)
Section: Chapter Questions
Problem 4R: The president of Poleski would like to know the effect that each of the following suggestions for...
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* 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 O decimal places, e.g. 2.520.) Net income Amounts Break-even point in sales The condensed income statement for the Linda and Robert partnership for 2025 is as follows. Administrative Net loss 146,060 Linda and Robert Company Income Statement For the Year Ended December 31, 2025 Sales (270,000 units) $1,350,000 Cost of goods sold 900,000 Gross profit Operating expenses Selling $315,000 163,000 2.777.210 450,000 478,000 $(28,000) 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.
Transcribed Image Text:* 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 O decimal places, e.g. 2.520.) Net income Amounts Break-even point in sales The condensed income statement for the Linda and Robert partnership for 2025 is as follows. Administrative Net loss 146,060 Linda and Robert Company Income Statement For the Year Ended December 31, 2025 Sales (270,000 units) $1,350,000 Cost of goods sold 900,000 Gross profit Operating expenses Selling $315,000 163,000 2.777.210 450,000 478,000 $(28,000) 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.
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