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Break-Even Sales Under Present and Proposed Conditions The division of costs between variable and fixed is as follows: $3,000,000 but will not affect the relationship

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Break-Even Sales Under Present and Proposed Conditions The division of costs between variable and fixed is as follows: $3,000,000 but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs Total fixed costs $ $ 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost Unit contribution margin $ $ 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 units 6. Determine the maximum operating income possible with the expanded plant. 7. If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year? $

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