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Please answer the following questions, thanks! Break-Even Sales Under Present and Proased Conditions Kearney Company, operating et full capacity, sold 163,500 units at a price

Please answer the following questions, thanks!

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Break-Even Sales Under Present and Proased Conditions Kearney Company, operating et full capacity, sold 163,500 units at a price of $99 per unit during 2045. Its income statement for 2045 is as follows: Salns $15,185,500 Cost of goods sold (5,712,000) $10,444,500 Gross pranit Expenses : Selling expenses $2,871.000 Administrative expenses 1,715,000 Totel expenses (1,587,000) Income from operations $5.857,500 The division of costs between fixed and variable is as follows: Fixed Variable Cost of good sold 50% Selling expenses Administrative expenses 709 Management is considering a plant expansion program that will permit an increase of 51.287,000 (13,000 units at $99 per unit) in yearly sales. The expansion will increase fixed costs by $171,600, but will not affect the 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 reak-even sales (units) for 2015. units 4. Compute the break-even sales (units) under the proposed program. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $5,857,500 of income from operations that was earned in 20Y5. units 6. Determine the maximum operating income possible with the expanded plant. 7. If the proposal is accepted and sales remain at the 2015 level, what will be the operating income or loss for 2016? 8. Assuming a lack of market research, disadvantages for expanding the plant include all of the following except: a. The break-even point increases. b. The sales necessary to maintain the current income from operations must increase in excess of 2045 sales. C. If future sales remain at the 2015 level, the income from operations will decline. d. The maximum income from operations possible with the expanded plant is less than the current income from operations

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