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 $$57,200,000$ of operating income that was earned in th 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?

$$ Income $$

$8.$ 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$.$ Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.

Choose the correct answer.

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