Brosk-Even Soles Under Prosert snd Propowed Conditions The division of costs between varioble and fived is as foliows: Manegement it considering a plant exponsion program for the followiog yeor that wat permit an incrase of 31,207,000 in restly sales. The wipansion wu incroese fixed costs by $171,600, but will not affect the relotionship between sales and variable covth. 1. Determine the totnl variable costs and the total fined costs for the currert rase 2. Determine (o) the unit vnriable cost and (b) the unit contributson mergin for the currest yete Unit verisble cost Unit contribution margin 3. Compute the break-even sales (units) for the current yewe. units 4. Combute the break-even sales (units) under the proposed program for the following reat units 5. Determine the armount of sales (units) that would be necessary under the propesed program to roullae the s5, s57. soo of income from operabions that wai esrned in the current yesr. uhits 6. Determine the maximum income from operations possible with the expanded plant. 7. If the proposal is accepted and sales remsin at the current level, what wilt the income ar loss trom aperations be for the following year? 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 possiblity of increasing income from operations. c. In favor of the proposal because of the incresse in break-even point. d. Reject the proposal because if future sales remain at the currant 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