I need help with the following accounting problem for my ACG2071 class please:

Break-Even Sales Under Present and Proposed Conditions

Battonkill Company, operating at full capacity, sold 167,200 units at a price of $60 per unit during 2014. Its income statement for 2014 is as follows:

Sales			$10,032,000
Cost of goods sold			3,560,000
Gross profit			$6,472,000
Expenses:
Selling expenses	$1,780,000
Administrative expenses	1,060,000
Total expenses			2,840,000
Income from operations			$3,632,000

The division of costs between fixed and variable is as follows:

	Fixed		Variable
Cost of goods sold	40%		60%
Selling expenses	50%		50%
Administrative expenses	70%		30%

Management is considering a plant expansion program that will permit an increase of $900,000 in yearly sales. The expansion will increase fixed costs by $120,000, but will not affect the relationship between sales and variable costs.

Required:

1. Determine for 2014 the total fixed costs and the total variable costs.

Total fixed costs	$ ____
Total variable costs	$ ____

2. Determine for 2014 (a) the unit variable cost and (b) the unit contribution margin.

Unit variable cost	$ _____
Unit contribution margin	$ ______

3. Compute the break-even sales (units) for 2014. units $______

4. Compute the break-even sales (units) under the proposed program. units $______

5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $3,632,000 of income from operations that was earned in 2014. units $______

6. Determine the maximum income from operations possible with the expanded plant. $ ______

7. If the proposal is accepted and sales remain at the 2014 level, what will the income or loss from operations be for 2015? $ ________