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

Total variable costs	$
Total fixed costs	$

2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.

Unit variable cost	$
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 $61,400,000 of operating income that was earned 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? $ IncomeLoss