The division of costs between variable and fixed is as follows:

Required:

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

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.

$x$ units

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

$x$ units

$x$ units

Determine the maximum operating income possible with the expanded plant.

s

$x$

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