The division of costs between variable and foced is as follows! Management is considering a plant exparsion program for the following year that witi permit an increase of 511.280 .000 in yearlv sales. The expansion will increase fored costs by $5,000,000 but will not affect the relationship betveen sales and variable costs. Hequiredi 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs 1 Total fored costs 1 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current vean: Unit variable cost 1 Unit contribution margin 1 9. Comante the break oven sales (units) for the current year. units 4. Cempute the breakeven sales (unito) under the proposed program for the following vear. units 5. Determine vie amount of sales (units) that would be necessary under the proposed program to realize the 560,000,000 of operating income that was eahed in. the current vear. units 6. Determine the maxomum operating income possible with the expanded plant. 7. If the proposal is accepted and sales remain at the current level, what wil the operating income or loss be for the following war? B. Easod on the data given, would you recommend accepting the proposal? a. In faver of the proponal because of the reduction in break even point. b. In faver of the preposal because of the possibility of increasing incame from operations