Hi! I need help with problems 5-8. Any help would be appreciated. (problem attached ) So far: 1. Total variable Cost = 75% * 1,400,000 + 60% * 400,000 + 80% * 387,500 = 1,600,000 Total fixed costs = 25% * 1,400,000 + 40% * 400,000 + 20% * 387,500 = 587,500 2. Unit variable cost = Total variable cost / no. of units sold = 1,600,000 / 64,000 = $ 25 Unit contribution margin = Unit sale price - unit variable cost = 45 - 25 = $20 3. Break-even sales = Total fixed costs / (Sale price per unit - Variable cost per unit) = Total fixed cost / unit contribution margin = 587,500 / 20 = 29,375 units 4. 40,000 units

PR 19-2B Break-even sales under present and proposed conditions 08.2, 3 Howard Industries Inc., operating at full capacity sold 6i,000 units at a price of $15 per unit during the current year. Its income statement is as follows: Sales $2,880,000 Cost of goods sold 1A00,000 Gross profit $1A80,000 Selling expenses Administrative expenses 387,500 Total expenses 787,500 Income from operations 692,500 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 25% Selling expenses Administrative expenses Chapter 19 Cost Behavior and Cost-Volume Profit Analysis 929 Management is considering a plant expansion program for the following year that will permit an increase of $900,000 in yearly sales. The expansion will increase fixed costs by $212,500 but will not affect the relations hip between sales and variable costs. Instructions ne the total fixed costs and the total variable costs for the current year. Determine (a) the unit variable cost and (b) the unit contribution margin for the cur- rent year. 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. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $692,500 of income from operations that was eamed in the cument year 6. Determine the maximum income from operations possible with the expanded plant. 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? Explain