Project #5: CVP Project 100 points) Below is the income Statement for Bikes "R" Us for the Year Ended December 31, 2021 Bikes "R"US Income Statement For the Year Ended December 31, 2021 $ Sales (200,000) Cost of Goods Sold Gross Profit 1,200,000 700,000 500,000 Operating Expenses Selling Administrative Net Loss 300,000 275,000 575,000 (75,000) A cost behavior analysis indicates that 70% of the cost of goods sold are variable, 45% of the selling expenses are variable, and 40% of the administrative expenses are variable. Rounding Instructions - Round FINAL variable cost to 2 decimals, FINAL break even answers to unit and Format: Prepare parts 2 and 3 in CVP income statement format and show all computations using formu PART 1 Using the data in the income statement above, compute the break-even point in total sales dollars and in units for 2021 PART 2 PLANA - Steve, the Accounting Manager, has proposed a plan to improve its profitability. Steve feels that the q by spending $0.25 more per unit on better raw materials. The selling price per unit could be increased to $6.25. Steve es Compute net income under Steve's proposal and the break-even point in dollars. (NOTE: DO NOT Round the contribution margin ratio.) PART 3 PLAN B - Lisa, was a sales and marketing major in college. Lisa believes that sales volume can be increased only by an She proposed the following plan as an alternative to Steve's plan: (1) increase variable selling expenses to $0.70 per unit and (3) increase fixed selling expenses by 550,000. Lisa based her recommendations on an old marketing research repor | A Cost behavior analysis indicates that 70% of the cost of goods sold are vanable, 45% of the seg expenses are variable, and 40% of the administrative expenses are variable. 20 Rounding Instructions - Round FINAL variable cost to 2 decimals, FINAL break even answers to unit and Sul Format: Prepare parts 2 and 3 in CVP income statement format and show all computations using formu Cre PART 1 Using the data in the income statement above, compute the break-even point in total sales dollars and in units for 2021 15 Sub not tho 9 PART 2 PLANA - Steve, the Accounting Manager, has proposed a plan to improve its profitability. Steve feels that the by spending $0.25 more per unit on better raw materials. The selling price per unit could be increased to 56.25. Steve es Compute net income under Steve's proposal and the break-even point in dollars. 10+ Belc not com (NOTE: DO NOT Round the contribution margin ratio) PART 3 PLAN B - Lisa, was a sales and marketing major in college, Lisa believes that sales volume can be increased only by an She proposed the following plan as an alternative to Steve's plan: (1) increase variable selling expenses to $0.70 per unit For and (3) increase fixed selling expenses by $50,000. Lisa based her recommendations on an old marketing research repon This increase by 30% if these changes were made. Compute net income under Lisa's proposal and break-even point in dollar prese (NOTE: DO NOT Round the contribution margin ratio.) 20- Form expes PART 4 Which plan do you believe should be accepted and why? Using good written communication, completely and throughly 10 to Orgar answ --UPLOAD YOUR COMPLETED SPREADSHEET TO CANVAS TO SUBMIT YOUR ASSIGNMENT IF YOU ARE USING A DIFFERENT SPREADSHEET SOFTWARE OTHER THAN MICROSOFT EXCEL CONVERT THE FILE TO A MICRO UPLOADING OR YOU WILL RECEIVE A ZERO FOR THIS PROJECT Project #5: CVP Project 100 points) Below is the income Statement for Bikes "R" Us for the Year Ended December 31, 2021 Bikes "R"US Income Statement For the Year Ended December 31, 2021 $ Sales (200,000) Cost of Goods Sold Gross Profit 1,200,000 700,000 500,000 Operating Expenses Selling Administrative Net Loss 300,000 275,000 575,000 (75,000) A cost behavior analysis indicates that 70% of the cost of goods sold are variable, 45% of the selling expenses are variable, and 40% of the administrative expenses are variable. Rounding Instructions - Round FINAL variable cost to 2 decimals, FINAL break even answers to unit and Format: Prepare parts 2 and 3 in CVP income statement format and show all computations using formu PART 1 Using the data in the income statement above, compute the break-even point in total sales dollars and in units for 2021 PART 2 PLANA - Steve, the Accounting Manager, has proposed a plan to improve its profitability. Steve feels that the q by spending $0.25 more per unit on better raw materials. The selling price per unit could be increased to $6.25. Steve es Compute net income under Steve's proposal and the break-even point in dollars. (NOTE: DO NOT Round the contribution margin ratio.) PART 3 PLAN B - Lisa, was a sales and marketing major in college. Lisa believes that sales volume can be increased only by an She proposed the following plan as an alternative to Steve's plan: (1) increase variable selling expenses to $0.70 per unit and (3) increase fixed selling expenses by 550,000. Lisa based her recommendations on an old marketing research repor | A Cost behavior analysis indicates that 70% of the cost of goods sold are vanable, 45% of the seg expenses are variable, and 40% of the administrative expenses are variable. 20 Rounding Instructions - Round FINAL variable cost to 2 decimals, FINAL break even answers to unit and Sul Format: Prepare parts 2 and 3 in CVP income statement format and show all computations using formu Cre PART 1 Using the data in the income statement above, compute the break-even point in total sales dollars and in units for 2021 15 Sub not tho 9 PART 2 PLANA - Steve, the Accounting Manager, has proposed a plan to improve its profitability. Steve feels that the by spending $0.25 more per unit on better raw materials. The selling price per unit could be increased to 56.25. Steve es Compute net income under Steve's proposal and the break-even point in dollars. 10+ Belc not com (NOTE: DO NOT Round the contribution margin ratio) PART 3 PLAN B - Lisa, was a sales and marketing major in college, Lisa believes that sales volume can be increased only by an She proposed the following plan as an alternative to Steve's plan: (1) increase variable selling expenses to $0.70 per unit For and (3) increase fixed selling expenses by $50,000. Lisa based her recommendations on an old marketing research repon This increase by 30% if these changes were made. Compute net income under Lisa's proposal and break-even point in dollar prese (NOTE: DO NOT Round the contribution margin ratio.) 20- Form expes PART 4 Which plan do you believe should be accepted and why? Using good written communication, completely and throughly 10 to Orgar answ --UPLOAD YOUR COMPLETED SPREADSHEET TO CANVAS TO SUBMIT YOUR ASSIGNMENT IF YOU ARE USING A DIFFERENT SPREADSHEET SOFTWARE OTHER THAN MICROSOFT EXCEL CONVERT THE FILE TO A MICRO UPLOADING OR YOU WILL RECEIVE A ZERO FOR THIS PROJECT