Break-Even Sales Under Present and Proposed Conditions Battonkill Company, operating at full capacit sold 110,800 units at a price of $78 per unit during the current year. Its income statement for the current year is as follows: Sales $8,642,400 Cost of goods sold 3,068,000 $5,574,400 Gross profit Expenses: $1,534,000 Selling expenses Administrative expenses 910,000 Total expenses 2,444,000 $3,130,400 Income from operations The division of costs between fixed and variable is as follows: Fixed Variable 40% Cost of goods sold 60% Selling expenses 50% 50% Administrative 30% 70% expenses Management is considering a plant expansion program that will permit an increase of $780,000 in yearly sales. The expansion will increase fixed costs by $104,000, but will not affect the relationship between sales and variable costs