Break-Even Sales U nder Present and Proposed Conditions Boleyn Company, operating at full capacity, sold 120,000 units at a price of $140 per unit during 2014. Its income statement for 2014 is as follows: Sales $16,800,000 Cost of goods sold 6,200,000 Gross profit $10,600,000 Expenses: Selling expenses. $3,400,000 Administrative expenses ,550,000 4,950,000 Total expense come from operations 5,650,000 The division of costs between variable and fixed is as follows: Variable Fixed 40% Cost of goods sold Selling expenses 75% 25% 40% Administrative expenses Management is considering a plant expansion program that will permit an increase of $2,800,000 in yearly sales. The expansion will increase fixed costs by $1,250,000, but will not affect the relationship between sales and variable costs