costs by $$5,000,000$ but will not affect the relationship between sales and variable costs.

Required:

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

$5.$ Determine the amount of sales $($units$)$ that would be necessary under the proposed program to realize the $$61,100,000$ of operating income that was earned in the current year.

$$ 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?