Break-Even Sales Under Present and Proposed Conditions Kearney Company, operating at full capacity, sold 143,000 units at a price of $126 per unit during 205. Its Income statement for 2015 is as follows: Sales $18,018,000 Cost of goods sold (6,384,000) Gross profit $11,634,000 Expenses: Selling expenses $3,192,000 Administrative expenses 1,932,000 Total expenses (5,124,000) Income from operations $6,510,000 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% Management is considering a plant expansion program that will permit an increase of $1,638,000 (13,000 units at $126 per unit) in yearly sales. The expansion will increase fixed costs by $218,400, but will not affect the relationship between sales and variable costs. Instructions: 1. Determine for 2015 the total fixed costs and the total variable costs. Total fixed costs 5,720,400 X Total variable costs 6,002,182 X 2. Determine for 20YS (a) the unit variable cost and (b) the unit contribution margin. a. Unit variable cost 38.48 X per unit b. Unit contribution margin 87.52 X per unit 3. Compute the break-even sales (units) for 20Y5