BreakEven 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 $188,000,000 Cost of goods sold (100,000,000) Gross profit $88,000,000 Expenses: Selling expenses $15,000,000 Administrative expenses 13,500,000 Total expenses (28,500,000) Operating income $59,500,000 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% expen 585 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 xed costs by $3,000,000 but will not affect the relationship between sales and variable costs. Dnnlliratl- 6. Determine the maximum operating income possible with the expanded plant. 7. If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year