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  3. required: determine the total variable costs and t

Required: Determine the total variable costs and the total fixed costs for the current Total...

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Question

Accounting

Required:
Determine the total variable costs and the total fixed costs for the current
Total variable costs $
90,000,000
Total fixed costs
Determine (a) the unit variable cost and (b) the unit contribution margin f
Unit variable cost $
Unit contribution margin $
Compute the break-even sales (units) for the current year.
417,000 units
Compute the break-even sales (units) under the proposed program for the
452,000 units
Determine the amount of sales (units) that would be necessary under the p
earned in the current year.
1,035,000
units
Determine the maximum operating income possible with the expanded plan
$
46,700,000
x
If the proposal is accepted and sales remain at the current level, what will th
$
58,300,000
x Income
Based on the data given, would you recommend accepting the proposal?
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