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 $105,000,000 Cost of goods sold (101,000,000) Gross prot $35,000,000 Expenses: Selling expenses $16,000,000 Administrative expenses 6,500,000 Total expenses (22,600,000) Operating income $62,400,000 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 $11,160,000 in yearly sales. The expansion will increase xed costs by $3,500,000 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 xed costs $ 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable oust $[: Unit contribution margin D 3. Compute the breakeven sales (units) for the current yeah ' units 4. Compute the breakeven sales (units) under the preposed program for the following year. units J 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the