relstaonafop twibien salea and variabie corrh. Aerquiritil Lieif vai abe kat 1. Delermine the total variabie cosiu ard shg tokal fowet cuts foc the rure-t may Ticai varibile cotis 1 *iral fired carts 1 Uit vanatio cout 3 Unit encthintise maroin 1 yititi intis 3. In tavar of the proposat hecause if the redution on break-eren patac. Chese the kemest animer Break-even sales under present and proposed conditions Partmann cempany, operating at ful capacky, sold 1,000,000 units at a price of s18s per unit during the current yeac. Its income s4atement is as follows: The disision of costs between veriatie and fised is at follows: Management is considening a plant expansien program for the following year that wail permit an incease of $11,280,000 in yearly sales. The exponslon eif inorease fixed costs by 55,000,000 but will nok affect the relationship between saies and variable costs. Required: 1. Determine the total variabie costs and the total fixed costs for the current year. Total variable costs: Total fixed costs 9 2. Determine (a) the uhit variable cost and (b) the unit contribution margin for the current year: Unit variahle cost } 1. Determine the total vaelabin casts end the total fixtd costs for the current year: Totail variable costs Total fixed costs 1 2. Determine (a) thie unit varlable cost and (b) the unit contrituation inargin for the current yeor Unit variable cost 5 Unit contribution margin 1 3. Comnute the break-even saies (units) for the current yosc units 4. Combuze the treakeven sales (unita) under the proposed program for the following yeac anits 5. Determine the amount of sales fonha) that would be necessary under the proposed propram to realize the s6o,000, 6oo of operating income that was earned in the cument veah. units 6. Determine the maximem eperating income possbie with the expanded plast. 7. If the proposal is accepted and sales reinain at the current ievel, whot wil the operating intome or lots be for the follawing year? B. Besed on the data gvinh, would you recommend accepting the proposal? 3. In fovar of the proposat becausa of the reduction in break-even point. b. In favor of the proposat because of the possbility of increasing income fom oserations: c. In faver of the proposal because of the increase in break-even point. d. Reject the proposal because it future sales remain at the current level, the incoine from eperotions will increase. 6. Peject the peoposal because the sales necessary to maintain the current income from operations would be beigw the current year sales. Ghap 20; PR 202A Ceogsgenowva I Dware iwastiry ary Flationikis is tineen sies and varateste rosti. Paquiten 1. betentane the tocai warabie best and the tocal fieed cents far the curiest reat. fust vary ili cours Tital ficed costs i I luat war able isit 1. Detern ine the total variable costs anod the fotol tised costs for the current year Total variasie costis : Torai fikod costa s 2. Determine (a) the Lit it warlable cost ant (b) the uni contriautikn marpo for the cumrent yoar: Init pariable cost 4 Unit contnitutan itarais 1 3. Comnute the brosk aves sales (unsti) for the current ynar 4. Cannoute tha fcenk-even sdes funitis) under the proposed program for the foliewing yeyo inits units A. Definine She makimum dstroting income possible with the sxpanded plant. a. Based ry the data givef, mould yeu fecominend accepting the preposal? * In favor of the proparal tiecause of the reduction in breaketven point - In forre of the preporat becauste of the possbilty of increasing income from operations. F. ln fawer of the Broposal tecesse of the increase in break-even point. d. feke st the preposat because if fufure sales remain at the cumert ievel, the income from egerations will incoresse. c. feject the probosal bechuse the sales necessary to inaintain the current income from aperations wobld be belous the aur enet year sales. Arasas the edriett an witr. relstaonafop twibien salea and variabie corrh. Aerquiritil Lieif vai abe kat 1. Delermine the total variabie cosiu ard shg tokal fowet cuts foc the rure-t may Ticai varibile cotis 1 *iral fired carts 1 Uit vanatio cout 3 Unit encthintise maroin 1 yititi intis 3. In tavar of the proposat hecause if the redution on break-eren patac. Chese the kemest animer Break-even sales under present and proposed conditions Partmann cempany, operating at ful capacky, sold 1,000,000 units at a price of s18s per unit during the current yeac. Its income s4atement is as follows: The disision of costs between veriatie and fised is at follows: Management is considening a plant expansien program for the following year that wail permit an incease of $11,280,000 in yearly sales. The exponslon eif inorease fixed costs by 55,000,000 but will nok affect the relationship between saies and variable costs. Required: 1. Determine the total variabie costs and the total fixed costs for the current year. Total variable costs: Total fixed costs 9 2. Determine (a) the uhit variable cost and (b) the unit contribution margin for the current year: Unit variahle cost } 1. Determine the total vaelabin casts end the total fixtd costs for the current year: Totail variable costs Total fixed costs 1 2. Determine (a) thie unit varlable cost and (b) the unit contrituation inargin for the current yeor Unit variable cost 5 Unit contribution margin 1 3. Comnute the break-even saies (units) for the current yosc units 4. Combuze the treakeven sales (unita) under the proposed program for the following yeac anits 5. Determine the amount of sales fonha) that would be necessary under the proposed propram to realize the s6o,000, 6oo of operating income that was earned in the cument veah. units 6. Determine the maximem eperating income possbie with the expanded plast. 7. If the proposal is accepted and sales reinain at the current ievel, whot wil the operating intome or lots be for the follawing year? B. Besed on the data gvinh, would you recommend accepting the proposal? 3. In fovar of the proposat becausa of the reduction in break-even point. b. In favor of the proposat because of the possbility of increasing income fom oserations: c. In faver of the proposal because of the increase in break-even point. d. Reject the proposal because it future sales remain at the current level, the incoine from eperotions will increase. 6. Peject the peoposal because the sales necessary to maintain the current income from operations would be beigw the current year sales. Ghap 20; PR 202A Ceogsgenowva I Dware iwastiry ary Flationikis is tineen sies and varateste rosti. Paquiten 1. betentane the tocai warabie best and the tocal fieed cents far the curiest reat. fust vary ili cours Tital ficed costs i I luat war able isit 1. Detern ine the total variable costs anod the fotol tised costs for the current year Total variasie costis : Torai fikod costa s 2. Determine (a) the Lit it warlable cost ant (b) the uni contriautikn marpo for the cumrent yoar: Init pariable cost 4 Unit contnitutan itarais 1 3. Comnute the brosk aves sales (unsti) for the current ynar 4. Cannoute tha fcenk-even sdes funitis) under the proposed program for the foliewing yeyo inits units A. Definine She makimum dstroting income possible with the sxpanded plant. a. Based ry the data givef, mould yeu fecominend accepting the preposal? * In favor of the proparal tiecause of the reduction in breaketven point - In forre of the preporat becauste of the possbilty of increasing income from operations. F. ln fawer of the Broposal tecesse of the increase in break-even point. d. feke st the preposat because if fufure sales remain at the cumert ievel, the income from egerations will incoresse. c. feject the probosal bechuse the sales necessary to inaintain the current income from aperations wobld be belous the aur enet year sales. Arasas the edriett an witr