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can someone help me on the last fee questions for this problem? Break-Even Sales Unger Fresent and Froposed Conditions The divtush of ceatis between veriatien
can someone help me on the last fee questions for this problem?
Break-Even Sales Unger Fresent and Froposed Conditions The divtush of ceatis between veriatien and fined is at fojovst: Menbgement is considering a plent expansion pregram for the folowing year that wie pormit an increse of 513,300 , ooo in yoany seies. The expensian ent increase fixed costs by 53,500,000 but win not atred the relat ioceship between saies and varieble costs. Requlredt 1. Determine the total variatie costs and the totat fived costa for the current year. 2. Determine (a) the unit yaniable cost. and (b) the unic cointribution mbrgin for the chrrent yoer. 3. Compute the breakedrem sales (unds) foc then current yeare units 4. Compute the break-iven saies (unts) uncer the proposed programi for the fobsw ng year. urits 5. Determine the amount of sales (anits) that woyla be necessary unser the proposed program to reolee then 557 , soo, 000 of operat ing inoome that war earned in the current year units 6. Determine the fraximum operating incorm: possibie with the evpanded piant. 3. Compule the brakk-even sales (units) for thin current your. units 4. Ceimpite the Ereak-eyen saies (unita) under the proposed program for the following year. urias 5. Doterinine the omicunt of sales fients) that would be nocessary unoer the proposed program to reelie the 157 , Sob, 080 of obeinting intame fiot iss earned in the current year. LTits 5. Determine the manimum eperating income possible with the expended econt. 1. B. Dased on the data given, would you recammend accepting the prepossi? a. In favor of the propesal becouse of the reduction in breok even point. b. In favor of the proposal bocause of the possibitity of increasing insome from operations. c. In favor of the proposat because of the incresse in tretak-tiven point. d. Reject the proposal because if future sales femain at the current ievel, the income from operations ail increase A. Peject the proposal because the saks necessary to maintain the currert income, from operaboes would be below the curnent yeat saies. Checio the correct arswer Step by Step Solution
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