The East Company is operating at full capacity and sold 100,000 units at a price of $80 per unit during 2020. Its gross margin (profit) income statement for 2020 is as follows: Sales $8,000,000 Cost of goods sold 4,000,000 Gross profit 4,000,000 Operating expenses: Selling expenses $2,500,000 Administrative expenses 500,000 Total operating expenses 3,000,000 Operating income $1,000,000 The proportion of the above costs between fixed and variable is as follows: Fixed Variable Cost of goods sold $4,000,000 35% 65% Selling expenses $2,500,000 20% 80% Administrative expenses $ 500,000 60% 40% Extended Analysis: Management is considering a plant expansion program that will permit the company to manufacture and sell more units in 2021. The expansion will allow an increase of $1,150,000 in yearly sales but the selling price and variable costs per unit are expected to remain the same as 2020. The expansion will increase annual fixed costs by $300,000. Again, this expansion will not affect the relationships between sales and variable costs on a per unit or percent of sales basis. 4) Compute the 2021 break-even sales in (a) UNITS and (b) SALES DOLLARS given the expansion. 5) For 2021, determine the amount of sales in units that would be necessary, given the expansion program, to realize the same $1,000,000 of operating income that was earned in 2020. 6) Assume the company's tax rate is 20%, determine the amount of sales in units that would be necessary in 2021, given the expansion program, to realize an after-tax net income of $1,000,000. 7) Determine the maximum operating income possible for 2021 with the expanded plant. Given this result, is the target net income in 6) above possible to achieve? 8) If the proposed expansion is implemented and sales for 2021 remain at last year's (2020) amount, what will be the total operating income or loss for 2021