Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $188 per unit during the current year. Its income statement is as follows: Sales Cost of goods sold Gross profit $185,000,000 (101,000,000) $87,000,000 Selling expenses $15,000,000 Administrative expenses 12,100,000 Total expenses Operating income (27,100,000) $59,900,000 The division of costs between variable and fixed is as follows: Cost of goods sold Seiling expenses Administrative expenses Variable Fixed 70% 30% 75% 25% 50% 50% Management is considering a plant expansion program for the following year that will permit an increase of $13,160,000 in yearly sales. The expansion will increase fixed costs by $5,000,000 but will not affect the relationship between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs Total fixed costs 88,000,000 Previous