Required:

Determine the total variable costs and the total fixed costs for the current year.

Total variable costs $

$90,000,000$

$$

Total fixed costs $

$$

Determine $($a$)$ the unit variable cost and $($b$)$ the unit contribution margin for the current year.

Unit variable cost $

Unit contribution margin $

Compute the break$-$even sales $($units$)$ for the current year.

$$ units

Compute the break$-$even sales $($units$)$ under the proposed program for the following year.

units

Determine the amount of sales $($units$)$ that would be necessary under the proposed program to realize the

$$58,000,000$ of operating income that was earned in the current year.

units

Determine the maximum operating income possible with the expanded plant.

$

If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the

following year?

$