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fRequired: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs ${:] Total xed costs C 2.
\fRequired: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs ${:] Total xed costs C 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost Unit contribution margin E 3. Compute the break-even sales (units) for the current year. 4. Compute the break-even sales (units) under the proposed program for the following year 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $60,000,000 of operating income that was earned in the current year. 6. Determine the maximum operating income possible with the expanded plant. $:1 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'? $:l' 8. Based on the data given, would you recommend accepting the proposal? . In favor of the proposal because ofthe reduction in break-even point. . In favor of the proposal because of the possibility of increasing income from operations. . In favor of the proposal because ofthe increase in break-even point. . Reject the proposal because if future sales remain at the current level, the income from operations will increase. . Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales. mantra: Choose the correct answer. V
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