I need help with question 6.

Thank you

Break Even Sale Under Present and Proposed Conditions Perlman Company, Operating at full capacity, sold 1,000,000 units at a price of $188 per il during the current year. It income statement is as follows: SIB,000,000 Cost of goods sold (101,000,000) rasi palan $82,000,000 Expenses Selling exp 516,000,000 Administrative per 10,600,000 Totalex (26,600,000) Operating income $60,400,000 The division als ben variable and find as follows Variable Cost of goods sold 7045 30% Selling spes 25 Administrativa 5046 50% Management is considering a plant expansion program for the following year that will permitan increase of $13,160,000 in yearly sales. The expansion will increase and costs by 54,500,000 but will not affect the relationship between sales and variable costs. Required: 1. De in the total variable costs and the total fixed costs for the current year. Total antics 88,000,000 Total fixed 39,600,000 2. Deline (a) the unit variable and (b) the il contribution margin for the current year. Unit variable 88.00 un corbution marga 100.00 3. Corpule the beak-even units) for the current year. 396,000 4. Computer the break-even als units) under the proposed program for the following year. 441.000 til S. Delamine the amount of sales (units) that would be necessary under the proposed program to realize the $50,400,000 of operating income that was earned in the current year. 1.045,000 6. Deline the maxima operating income possible with the expanded plant 7. If the proposals accepted and sales remain at the current level, what will the operating income or less before the following year? 55,900,000 Income 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 bec of the possibility of increasing income from operations. c. In favor of the proposal because of the increase in break-ivit. d. Reject the proposal because if future sal 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 operation would be below the current sales Choose the correct answer. Fas 1. Multiply the parolagus for lead and variable costs by each co. 2. a. Divide the total variable costs by number of units 2. L. Salus price per units van conte contribution margine per unit . Fixed costs divided by unit contribution marginal break-even point 4. Fixed costs under the proposed program divided by contribution marging wbreak-even point (Fides + Target profil divided by unit contribution margin quals sales units. 6. Determine the increase in units by dividing the sales increase by the price per unit. Add the additional revenue and additional fixed costs when calculating Salesmined and variable costs income from operations 7. Subtract the additional costs from the operating income 8. Consider the break-even point and the sales needed for the proposed level