just need answers
Break-Even Sales Under Present and Proposed Conditions Kearney Company, operating at l capacity, sold 101,400 units at a price of $57 per unit during 2015. Its income statement for 2015 is as follows: Sales $5,779,800 Cost of goods sold (2,052,000) Gross profit $3,727,800 Expenses: Selling expenses $1,026,000 Administrative expenses 608.000 Total expenses (1,6.34,000) Income from operations 52,093,300 The division of costs between fixed and is as fotos Fixed Variable Cost of good sold 60 Selling expenses SO Administrative expenses 704 301 So Management is considering a plant expansion program that will permit an increase of $513.000 19,000 units 557 per unit) in yearly sales. The expansion will increased costs by 168,000, but not affect the relationship between sales and able costs Instructions: Management is considering a plant expansion program that will permit an increase of $513,000 (9.000 units at $57 per unit) in yearly sales. The expansion will increase fixed costs by $68,400, but will not affect th relationship between sales and variable costs. Instructions: 1. Determine for 2015 the total fixed costs and the total variable costs. Total fixed costs Total variable costs 2. Determine for 2015 (a) the unit variable cost and (b) the unit contribution margin, a. Unit variable cost per unit b. Unit contribution margin per unit 3. Compute the break-even sales (units) for 2015 units 4. Compute the break-even sales (units) under the proposed program 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $2,093,800 of income from operations that was earned in 2015 units 6. Determine the maximum operating income possible with the expended plant. 7. If the proposal is accepted and sales remain at the 2015 level, what will be the operating income or loss for 2016? Income Previous