Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $199 per unit bung the current year. Its income statement f Sales Cest of goods sold Gross profe $189,000,000 (102,000,000) $87,000,000 Expenses Selling expenses $15,000,000 Administrative expenses 12.700.000 Total expenses Operating Income The division of costs between vale and Cost of goods sold Selling x Administrative (27,700,000) Variable Fixed 70% 30% 75% 50% pot an crease of 9,410,000 in y Required 1. Determine the tuta var at the total fond Total varte co 2. Determine (a) the unit varat and (3) the er Ut variable s Unit stien marge 3. Campute the breakeven sales (un) for the cent year 4. Compute the break-even sales (units) under the proposed program for the following year units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $59,300,000 of operating income that was earned in the cent 6. Determine the maximum operating income possible with the expanded int 7. If the proposal is accepted and sales remain at the tument level, what will the costing income or ass be for the following year? Income 8. Based on the data given, would you remmend accepting the or a. In favor of the proposal because of the reduction in break-even point b. In favor of the proposal because of the possibility of increasing income from operations In favor of the proposal because of the increase in break-even point d. Reject the proposal because if future sales remain at the current level, the income from operations will Reject the proposal because the sales necessary to maintain the tument income from sperations w Choose the correct an se below the curent year sa 1. Multiply the percentages he fed and vable costs by mach 2. Divide the total venale cats by number of us Fed costs under the red gran divided by contribution margin squals new breakeven point (Fotos Target provided by unit contribution margin us Sas mus fed and variatie es e income from operations 7.Subtract the one fet from the t Come the event and the seed for the propose