Break-Even Sales Under Present and Proposed Conditions Battonkill Company, operating at full capacity, sold 156,100 units at a price of $117 per unit during the current year. Its income statement for the current year is as follows: Sales Cost of goods sold Gross profit Expenses $18,263,700 6,474,000 $11,789,700 Selling expenses $3,237,000 Administrative expenses 1,950,000 Total expenses 5,187,000 Income from operations $6,602,700 The division of costs between fixed and variable is as follows: Fixed Variable 40% Cost of goods sold Selling expenses Administrative expenses Management is considering a plant expansion program that will permit an increase of $1,638,000 in yearly sales. The expansion will increase fixed costs by $218,400, but will not affect the relationship between sales and variable costs 60% 50% 50% 70% 30%