Kearney Company, operating at full capacity, sold 172,900 units at a price of $69 per unit during 2015. Its income statement for 2045 is as follows: Sales $11,930,100 Cost of goods sold (4,232,000) Gross profit $7,698,100 Expenses Selling expenses $2,116,000 Administrative expenses 1,265,000 Total expenses (3,381,000) Income from operations $4,317,100 The division of costs between fixed and variable is as follows: Fixed Variable Cost of good sold 40% 60% Selling expenses 50% 50% Administrative expenses 70% 30% Management is considering a plant expansion program that will permit an increase of $1,104,000 (16,000 units at $69 per unit) in yearly sales. The expansion will Increase fixed costs by $147,200, but will not affect the relationship between sales and variable costs. Instructions: 1. Determine for 2015 the total fixed costs and the total variable costs. Total fixed costs Total variable costs 2. Determine for 2075 (w) the unit variable cost and (b) the unit contribution margin a. Unit variable cost b. Unit contribution margin 3. Compute the break-even sales (units) for 20ys. per un per unit units 4. Compute the break-even sales (units) under the proposed program. units S. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $4,317,100 of income from operations that was earned in 2045 units 6. Determine the maximum operating income possible with the expanded plant, 7. If the proposal is accepted and sales remain at the 2015 level, what will be the operating income or loss for 2016