Battonkill Company, operating at full capacity, sold 125,900 units at a price of $54 per unit during 2010. Its income statement for 2010 is as follows: Sales $6,798,600 Cost of goods sold 2,412,000 Gross profit $4,386,600 Expenses: Selling expenses $1,206,000 Administrative expenses 720,000 Total expenses 1,926,000 Income from operations $2,460,600 The division of costs between fixed and variable is as follows: Fixed Variable Cost of sales 40% 60% Selling expenses 50% 50% Administrative expenses 70% 30% Management is considering a plant expansion program that will permit an increase of $594,000 in yearly sales. The expansion will increase fixed costs by $79,200, but will not affect the relationship between sales and variable costs. 1. Determine for 2010 the total fixed costs and the total variable costs. Total fixed costs: $ Total variable costs: $ 2. Determine for 2010 the (a) unit variable cost and (b) the unit contribution margin. a. Unit variable cost: $ b. Unit contribution margin: $ 3. Compute the break-even sales in units for 2010. units 4. Compute the break-even sales in units under the proposed program. units 5. Determine the amount of sales in units that would be necessary under the proposed program to realize the $2,460,600 of income from operations that was earned in 2010. units 6. Determine the maximum income from operations possible with the expanded plant. $ 7. If the proposal is accepted and sales remain at the 2010 level, what will the income or loss from operations be for 2011? $