Break-Even Sales Under Present and Proposed Conditions Battonkill Company, operating at full capacity, sold 131,600 units at a price of $63 per unit during the current year. Its income statement for the current year is as follows: Sales Cost of goods sold Gross profit Expenses: $8,290,800 2,940,000 $5,350,800 Selling expenses $1,470,000 Administrative expenses 882,000 Total expenses 2,352,000 Income from operations $2,998,800 The division of costs between fixed and variable is as follows: Fixed Variable 40% Cost of goods sold Selling expenses Administrative expenses 60% 50% 50% 30% Management is considering a plant expansion program that will permit an increase of $756,000 in yearly sales. The expansion will increase fixed costs by $100,800, but will not affect the relationship between sales and variable costs