Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $190 per unit during the current year. Its income statement is as follows: Sales $190,000,000 Cost of goods sold (100,000,000) Gross profit $90,000,000 Expenses: Selling expenses $14,000,000 Administrative expenses 19,000,000 Total expenses (33,000,000) Operating income $57,000,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative 50% 50% expenses Management is considering a plant expansion program for the following year that will permit an increase of $9,500,000 in yearly sales. The expansion will increase fixed costs by $4,000,000 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 $ 90,000,000Required: 1. Determine the total variable costs and the total fixed costs for the current year. Totalvariable costs $ 90,000,000 J Totalxed costs $ 43,000,000 v' 2. Determine [a] the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost Unit contribution margin 3. Compute the break-even sales (units) for the current year. 430,000 v' units 4. Compute the break-even sales (units) under the proposed program for the following year. woman if units 5. Determine the amount of sales [units] that would be necessary under the proposed program to realize the 557,000,000 of operating income that was earned in the current year. 1,040,000 J units 6. Determine the maximum operating income possible with the expanded plant. El: 3\". If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year?I