Break-even sales under present and proposed conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $186 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold Gross profit Expenses: $186,000,000 (98,000,000) $88,000,000 Selling expenses $15,000,000 Administrative expenses 12,300,000 Total expenses (27,300,000) Operating income $60,700,000 The division of costs between variable and fixed is as follows: Cost of goods sold Selling expenses Variable Fixed 70% 30% 75% 25% 50% 50% Administrative expenses Management is considering a plant expansion program for the following year that will permit an increase of $9,300,000 in yearly sales. The expansion will increase fixed costs by $3,000,000 but will not affect the relationship between sales and variable costs. 4. Compute the break-even sales (units) under the proposed program for the following year. X units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $60,700,000 of operating income that was earned in the current year. X units