Show Me How Management is considering a plant expansion program for the following year that will permit an increase of $13,020,000 in yearly sales. The expansion will increase xed costs by $3,500,000 bu will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total xed costs for the current year. Total variable costs at 36,000,000 V Total xed costs $_ 39,300,000 4 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost $- V. Unit contribution margin $- ~/ 3. Compute the break-even sates (units) for the current year. i 393,000 J units 4. Compute the breakeven sales (units) under the proposed program for the following year. E 428,000 / units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $60,700,000 of operating income that was earned in the current year. l 1,035,000 ~/ units 6. Determine the maximimnezamiummemesihlemith he expanded plant. $1 X