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Break-Even Sales Under Present and Proposed Conditions Battonkill Company, operating at full capacity, sold 105,400 units at a price of $48 per unit during 2014.

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Break-Even Sales Under Present and Proposed Conditions Battonkill Company, operating at full capacity, sold 105,400 units at a price of $48 per unit during 2014. Its income statement for 2014 is as follows $5,059,200 Cost of goods sold 1,792,000 $3.267,200 Gross profit Expenses: Selling expenses $896,000 Administrative expenses 544,000 Total expenses 1,440,000 Income from operations $1,827,200 The division of costs between fixed and variable is as follows: Fixed Variable Cost of goods sold 40% Selling expenses 50% 50% Administrative 70% 30% expenses Management is considering a plant expansion program that will permit an increase of $384,000 in yearly sales. The expansion will increase fixed costs by $51,200, but will not affect the relationship between sales and variable costs

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