Unit contribution margin

$$

$3.$ Compute the break$-$even sales $($units$)$ for the current year.

units

$4.$ Compute the break$-$even sales $($units$)$ under the proposed program for the following year.

units

$5.$ Determine the amount of sales $($units$)$ that would be necessary under the proposed program to realize the $$59,000,000$ of operating income that was earne in the current year.

units

$6.$ Determine the maximum operating income possible with the expanded plant. $

$7.$ If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year?

$

$8.$ Based on the data given, would you recommend accepting the proposal?

a$.$ In favor of the proposal because of the reduction in break$-$even point.

b$.$ In favor of the proposal because of the possibility of increasing income from operations.

c$.$ In favor of the proposal because of the increase in break$-$even point.

d$.$ Reject the proposal because if future sales remain at the current level, the income from operations will increase.

e$.$ Reiect the nronosal hecause the sales necessarv to maintain the current incom

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