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Brak-even sales under prennt and proponed conditiones follows: The divisibn of costs between varlable and foced is as follows: wili increase fised costs by $4,500,000
Brak-even sales under prennt and proponed conditiones follows: The divisibn of costs between varlable and foced is as follows: wili increase fised costs by $4,500,000 but will not uffect the relationship between iales and variable costs. will increase fixed costs by $4,500,000 but will not affect the redationship between farles and varlabile costs. Required: 1. Determine the total variable costs and the total fixed costi for the current whar. Total variable cosats Total fixed costs 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost Unit contribution margin 3. Combute the break-even sales (units) for the current year. units 4. Compute the break-even sales (units) under the proposed program for the following year. units earned in the current vear: units 6. Determine the mesimum operating income possble with the expanded plant
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