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figured our part of the problem. would appreciate the help on the future sales portion Whatie ciats Anenuirent hanagement is considering a plant expansion program

figured our part of the problem. would appreciate the help on the future sales portion image text in transcribed
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Whatie ciats Anenuirent hanagement is considering a plant expansion program for the following year that will permit an increase of $11,280,000 in vearly sales, The expansion will increase fixed costs by $5, ariable costs: Required: 1. Determine the tokal variable costs and the total floed costs for the current year. Total variable conts Total fixed toits : 2. Determine (a) the unit variable cost and (b) the unit contributioe maruin for the current vearUnit variable cont Unit contribution margin 1 accompute the break-owen sales (units) for the current year. units 4. Combute the bresk-even sales (units) under the proposed program for the following vear. units units 7. IIf the proposal is accested and swes remain at the current level, what will the operoting inccme or foss be for the following vean 4. Alusid on the dita olven, would you recommend accepting the proposal? a. In fovr ef the properal because of the reduction in treak-even point. b. In tavor of the praposat because of the possibility of lincreasing income from operotions. C. In tavor of thin proposial because of the increase in breakever point. c. Feject the propocal because the sales necessary to malntain the current locome from operations nould be below the current year wates. Doune thi conet anomet

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