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Breok-Even Sales Under Preient and Mroposed Cooditions Shond The risen yeur, its income statement is as folipwo: The division of costs between variable and fixed

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Breok-Even Sales Under Preient and Mroposed Cooditions Shond The risen yeur, its income statement is as folipwo: The division of costs between variable and fixed is as folfows: Management it considering a plant expansion program for the following year that will permit an increase of $11,160,000 in yearly sales. The expension will incresse flxed costs by $5,000,000 but will not affect the reistionahip between sales and variable costa. Required: 1. Determine the total variable costs and the total fixed costs for the current year. 2. Determine (o) the unit variable cost and (b) the unit contribution margin for the current year. 3. Compute the breakreven saies (units) for the current year. units 4. Compute the break-even sales (units) under the proposed program for the following vear. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to raalize the s61.000,000 of operating income that was earned in the current year: units 6. Determine the maximum operating income possible with the expanded plant

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