Break$-$Even Sales Under Present and Proposed Conditions

Portmann Company, operating at full capacity, sold $1,000,000$ units at a price of $$186$ per unit during the current year. Its income statement is as follows:

Sales $$186,000,000$

Cost of goods sold $(102,000,000)$

Gross profit $$84,000,000$

Expenses:

Selling expenses $$14,000,000$

Administrative expenses $8,200,000$

Total expenses $(22,200,000)$

Operating income $$61,800,000$

The division of costs between variable and fixed is as follows: