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2 Determine fal the unit variable cost and iby the unit contribu margin for the current year. Break-Even Sales Under Present and Proposed Conditions Portmann

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2 Determine fal the unit variable cost and iby the unit contribu margin for the current year. Break-Even Sales Under Present and Proposed Conditions Portmann Company operating at ful capacity, sold 1,000,060 unit at a price of $130 per unit during the current year, Its income 3. Compute the break-even sives funital for the current year statement is as follows Lines 4. Compute the break-even sales funital under the proposed program for the following year. altoon units 1001000 5. Determine the amount of sales funital that would be necess 8boodoou 13530050m under the proposed program to realize the $56,700,000 of operating income that was earned in the current year junks The division of costs between variable and fixed is as follows 6. Determine the maximum operating income possible with the God of goods soul expanded plant 7, If the proposal is accepted and sales remain at the carrent ! Management is considering a plant expansion program for the what will the operating income or loss be for the following year following year that will permit an increase of $11400,000 in yearly sales. The expansion will increase fixed costs by $5,000,000 but 8. Based on the data given, would you recommend accepting will not affect the relationship between sales and viable costs. proposal? Required a. In favor of the proposal because of the reduction in break-en 1. Determine the total variable costs and the total fixed costs for th point. b. In favor of the proposal because of the possibility of Increase current year. Income from operations. 1000,000 C. In favor of the proposal because of the increase in break-ev 43.300,00g point d. Reject the proposal because if Ature sales remain at the cu 2. Determine (a) the unit variable cost and (a) the unit contribution level. the income from operations will increase margin for the current year e Reject the proposal because the sales necessary to maintal current income from operations would be below the current sales. Choose the correct answer. 3. Compute the break-even sales (unital for the current yourDetomine fal the unit vanable cost arri iby the unit contrim mugin for the current year. Break-Even Sales Under Present and Proposed Conditions Portmann Company operating al ful capacity sold 1,000 000 write at a price of $180 per unit during the current year Its income 3. Con pute the break even ames fun tal for the current your statement is as follows 4. Compute the brock-oron movies buntal under the proposed program for the following year. aligon, unis 5. Determine the amount of sales tunital thur would be nocene. under the proposed program to realize the $50,700000 of spat sing incame that was earned in the current your unks The divalon of ous's botcon vourbible and fixed is as follows A. Determine the maximum operating incorte possible with the expanded plant 7, If the proposal is accepted and salas remain at the parent i Management is considering a plant expansion program for the what will the operating income or loss be for the following year following year that will port an increase of $11 400.000 In yourly sales. The expansion wil increase fixed costs by $5,000 000 but 8. Based on the data gion, would you recommend acoopting will not affect the relationship between sales and wviable costs proposif Required a In favor of the proposal because of the reduction in break-in 1. Determine the total variable costs and the total fixed costs for the point b. In favor of the proposal because of the possibility of hercast current your. income from operations. In favor of the proposal because of the increase in break em point d. Reject the proposal because If Are sales remain at the cu 2. Determine lak the unit variable cost and to) the unit contribution but the income from operations will increase margin for the current your Reject the proposal because the sales rocasanry to maintal current Income from operations would be below the current Balas. Choose the correct answer. 3. Compute the break-even sales orital for the current your we unite 4. Compute the break-even sales furilal under the proposed

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