Break-Even Sales Under Present and Proposed Conditions Howard Industries tnci, operating at full capacity, sold 64,000 units at a price of $45 per unit during the current year. Its income statement is as follows: The division of costs between variable and foxed is as follaws: costs by $212.500 but will not affect the relationship between sales and variable costs. 1. Determine the total fixed costs and the total variable costs for the current year: 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. 3. Compute 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 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $692,500 of operating income that was earned in the current vear. units 6. Determine the maximum operating income possible with the expanded plant. 7. If the proposal is accepted and sales remain ot the current level, whot wili the operating income or loss be for the following year? 8. Based on the data given, would you recommend accepting the proposal? 8. Based on the data given, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even point. b. In favor of the proposal because of the possibility of increasing operating income. c. In favor of the proposal because of the increase in break-even point. d. Reject the proposal because if future sales remain at the current level, the operating income will increase. e. Reject the proposal because the sales necessary to maintain the curgent operating income would be below the curreot year sales. Choose the correct