Sales . . . $2,880,000 Cost of goods sold 1,400,000 Gross profit . . .. . . . .. . $1,480,000 Expenses: Selling expenses ... . . . . . . . . $400,000 Administrative expenses. . . .. . . .. .. 387,500 Total expenses... . . .. . .......... 787,500 Income from operations . . . . . . $ 692,500 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 75% 25% Selling expenses 60% 40% Administrative expenses 80% 20% Management is considering a plant expansion program for the following year that will permit an increase of $900,000 in yearly sales. The expansion will increase fixed costs by $212,500 but will not affect the relationship between sales and variable costs. Instructions 1. Determine the total fixed costs and the total variable costs for the current year. 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year