Break-Even Sales Under Present and Proposed Conditions Kearney Company, operating at full capacity, sold 101,400 units at a price of $66 per unit during 20 Y5. Its income statement for 20Y5 is as follows: The division of costs between fixed and variable is as follows: variable costs. Instructions: 1. Determine for 20Y5 the total fixed costs and the total variable costs. 2. Determine for 20Y5 (a) the unit variable cost and (b) the unit contribution margin. 1. Determine for 20Y5 the total fixed costs and the total variable costs. Total fixed costs $ Total variable costs $ 2. Determine for 20Y5 (a) the unit variable cost and (b) the unit contribution margin. a. Unit variable cost b. Unit contribution margin \begin{tabular}{ll} $ & per unit \\ $ & per unit \end{tabular} 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 $2,424,400 of operating income that was earned in 20Y5. units 6. Determine the maximum operating income possible with the expanded plant. $ 7. If the proposal is accepted and sales remain at the 20Y5 level, what will be the operating income or loss for 20Y6 ? $ 8. Assuming a lack of market research, disadvantages for expanding the plant include all of the following except: a. The break-even point increases. b. The sales necessary to maintain the current income from operations must increase in excess of 20Y5 sales. c. If future sales remain at the 20Y5 level, the income from operations will decline. d. The maximum income from operations possible with the expanded plant is less than the current income from operations