Break-Ewen sales Unde Present and Proposed Co ditions The division of onste antwena varishle and flxat is as tollows: Required: 1. Deterrnine the total variable costs and the batal fixed costs for the current arar. Total variable cests Total 4xed costs 2. Detemmine (a) the unit vanable east ane (a) the unt contritution margin far the eurrent yer. Unit valiable cost Unit contribution marain 3. Cam aute the brosk-even sakes (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 income from operations possible with the expanded plant. $ 7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? 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 income from operations. 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 income from operations will increase. e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales. Choose the correct