Break$-$even sales under present and proposed conditions

Portmann Company, operating at full capacity, sold $1,000,000$ units at a price of $$190$ per unit during the current year. Its income statement is as follows:

Expenses:

Required:

Determine the total variable costs and the total fixed costs for the current year.

Total variable costs $

$x$

Total fixed costs $

Determine $($a$)$ the unit variable cost and $($b$)$ the unit contribution margin for the current year.

Unit variable cost

$x$

Unit contribution margin $

Compute the break$-$even sales $($units$)$ for the current year.

units

Compute the break$-$even sales $($units$)$ under the proposed program for the following year.

units

Determine the amount of sales $($units$)$ that would be necessary under the proposed program to realize the $$58,400,000$ of operating income that was earned in the current year.

units

Determine the maximum operating income possible with the expanded plant.

If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year?

$5$

Income