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Break.even taits buter present and proposed cond tipons The ctiscon of costs between var bibin and theed is as followi: rejabanstip becween sales and variabie cotts. 1. Determine the total vanable costs and the total fixed costs for the current year. Total varlable costs: Total foxed casts 5 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year: Unit variable cost 1 Unit contribution margin 3 . 3. Compute the break-even sales (units) for the current year. units 4. Compute the break-eveh sales (units) under the preposed program for the following year. onits 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the 562,000,000 of operating income that was eamed in the current year. units 6. Determine the maximum operating income possible with the expanded plant. 7. If the proposal is accepted and sales remain at the current level, what wili the operathig income or loss be for the following year? 8. Based on the data given, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even point. b. In fovor of the proposal because of the possibility of increasing income from operations. c. In favor of the proposal because of the increase in break-even point