need #3-7

The division of costs between variable and foxed is as foilows: Managernent is considering a plant expansion program for the following year that will permit an increase of $9,350,000 in yearly sales. The expansion will increase fixed costs by $4,500,000 but will not affect the relationship between sales and variable costs. 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs s Total fored costs $ 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost $ Unit contribution margin s 3. Compute the break-even sales (units) for the current year. units 4. Compute the break-even sales (units) under the proposed program for the following year. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $59,700,000 of operating income that was eamed in the current year: X units 6. Determine the maximum operating income possible wht the expanded plant. s 7. If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following vear