Break-Even Sales Under Present and Proposed conditions Kearney Company, operating at full capacity, sold 171,200 units at a price of $93 per unit during 20Y5. Its Income statement for 2015 is as follows: Sales $15,921,600 Cost of goods sold (5,642,000) Gross profit $10,279,600 Expenses: Selling expenses $2,821,000 Administrative expenses 1,705,000 Total expenses (4,526,000) Operating income $5,753,600 The division of costs between fixed and variable is as follows: Fixed Variable Cost of good sold 40% 60% Selling expenses 50% 50% Administrative expenses 70% 30% 1. Determine for 2015 the total fixed costs and the total variable costs Total fixed costs Total variable costs 2. Determine for 2015 (a) the unit variable cost and (b) the unit contribution margin a. Unit variable cost per unit b. Unit contribution margin per unit 3. Compute the break-even sales (units) for 20Y5. units 4. Compute the break-even sales (units) under the proposed program units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $5,753,000 of operating income that was earned in 2015, units 6. Determine the maximum operating income possible with the expanded plant. 7. If the proposal is accepted and sales remain at the 2015 level, what will be the operating income or loss for 2046? 8. Assuming a lack of market research, disadvantages for expanding the plant include all of the following except: Check My Work