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Break Even Sales Under Present and Proposind Conditions The divisuen of costs between varialik and fiones is as follows: 6. Determine the maximum operating income

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Break Even Sales Under Present and Proposind Conditions The divisuen of costs between varialik and fiones is as follows: 6. Determine the maximum operating income possible with the expanded plant. 7. If the proposal is accepted and sales remain at thecarrent leve, what will the operating incumie or loss be for the following year? 8. Based on the data given, would you recommend accepting the proposial? a. In favor of the proposal beciase of the reduction in break even point. b. In favor of the tiroposal because of the possibilay of increasing income from operations. c. In favor of the proposal because of the increase is break even point. d. Aeject the proposal becasse if future salew reman at the current level, the income from operations wil increase. Choose the correct answer. 1. Determine the total variable costs and the total foud costs for the current year. Unat varibble cost Ueit contribstion margin 3. Compute the break even sales (unuts) for the ourrent wear. units inits vear units

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