Ballywide Company, operating at full capacity, sold 92,240 units at a price of $140 per unit during 2013. Its incomeBallywide Company, operating at full capacity, sold 92,240 units at a price of $140 per unit during 2013. Its incomeBallywide Company, operating at full capacity, sold 92,240 units at a price of $140 per unit during 2013. Its incomeBallywide Company, operating at full capacity, sold 92,240 units at a price of $140 per unit during 2013. Its income statement for 2013 is as follows: Sales 12,913,600 Cost of goods sold 5,000,000 Gross profit 7,913,600 Expenses: Selling expenses 2,800,000 Administrative expenses 1,720,000 Total expenses 4,520,000 Income from operations 3,393,600 The division of costs between fixed and variable is as follows:The division of costs between fixed and variable is as follows:The division of costs between fixed and variable is as follows: Fixed Variable Cost of Sales 45% 55% Selling expense 55% 45% Administrative expense 65% 35% a. Determine for 2013 the total fixed costs and the total variable costs. b. Determine for 2013 (1) the unit variable cost and (2) the unit contribution margin. c. Compute the breakeven sales in units for 2013. d. Compute the breakeven sales in units under the proposed program. f. Determine the maximum income from operations possible with the expanded plant. h. Based on the data given, would you recommend accepting the proposal? e. Determine the amount of sales in units that would be necessary under the proposed program to realize the $3,393,600 of income from operations that was earned in 2013. g. If the proposal is accepted and sales remain at the 2013 level, what will the income or loss from operations be for 2014?
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