Hruik-Even Sales Unoer Present and Proposed Condians: The division of casts between variable and nixed is as follows: Managerment is considering a piant expansion program for the following year that will permit an increase of 5663,000 in yearly sales. The expansion will increase fixed costs by $88,400, but will not affect the relationship between sales and variable costs. Requirad: 1. Detcrining the total varisoie costs and the total fixed costs for the current yoar. 2. Determine (a) the unit variable cost and (b) the unit contnbution margin for the current year. 3. Compute the break-even soles (units) for the current year: units 4. Combute the breakeven sales (units) under the proposed program for the follawing year: units 5. Determine the ornount of sales (units) that would be necessary under the proposed program to realize the $2,913,800 of incorne from operations that was earned in the current year: units: 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? 3. Computat this pocak-avun sales (units) for the current veat, unitis. 4. Computa the bireak-iven sales (units) under the proposed program for the following year; units 5. Deturmino the emount of sales (un ts) that would be necussary under the proposed program to realite the 52,923,800 of income irum operations that was sarmed in the curvent yoar. units 6. Determina the maxtritum income from operations posstble with the expanded plant. 7. If the proposal is accepted and sales remain at the current lever, what will the income or loss from operations be for the foliowing yean 8. based on the data given, would you recornmend accepting the proposal? a. In favor of the propesal because of the reduction in break-even point. b. In fovor of the proposal becaluse of the possibility of increasing income from operations. E. In favor of the proposal because of the increose in breek-even point. d. Reject the proposal becouse if ruture soles remain at the current level, the income from operations will increase. 0. Reject the proposat because the sales necessary to maintain the current income from oparations would be bstiow the current year sales. Choose the correct