Break-Even Sales Under Present and Proposed Conditions Howard Industries Inc., operating at full capacity, sold 64,000 units at a price of $45 per unit during 2014. Its income statement for 2014 is as follows: Sales $2,880,000 Cost of goods sold 1,400,000 Gross profit $1A80,000 Expenses: $400,000 Selling expenses Administrative expenses. 387,500 Total expenses 787,500 Income from operations 692,500 The division of costs between variable and fixed is as follows Variable Fixed 75% Cost of sold goods 25% Selling expenses 80% Administrative expenses 20%