Number 7

X | D21 5-2 Milestone Two - INT-220 180 X D21 Grades - ACC-202-04127 Manag X CengageNOWv2 | Online teachin X + now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogres... A eBook Show Me How Management is considering a plant expansion program for the following year that will permit an increase of $13,020,000 in yearly sales. The expansion will increase fixed costs by $3,500,000 but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs 86,000,000 Total fixed costs 39,300,000 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost 86 Unit contribution margin 100 3. Compute the break-even sales (units) for the current year. 393,000 V units 4. Compute the break-even sales (units) under the proposed program for the following year. 428,000 V units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $60,700,000 of operating income that was earned in the current year. 1,035,000 V units 6. Determine the maximum operating income possible with the expanded plant. 64,200,000 V 7. If the proposal is accented and sales remain at the current level, what will the operating income or loss be for the following year? $ X I Incorrect Check My Work Previous Next &gt