Break-even sales under present and proposed conditions\ Portmann Company, operating at full capacity, sold

1,000,000

units at a price of

$187

per unit during the current year. Its income statement is as follows:\ Sales\

$187,000,000\ ((101,000,000))/($86,000,000)

\ Cost of goods sold\ Gross profit\ Expenses:\ \\\\table[[Selling expenses,

$15,000,000

,],[Administrative expenses,

10,100,000

,],[Total expenses,,

Break-even sales under present and proposed conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $187 per unit during the current year. Its income statement is as follows: ExDenses: The division of costs between variable and fixed is as follows: Required: 1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs $ Total fixed costs $ 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. units 4. Compute the break-even sales (units) under the proposed program for the following year. units X units 6. Determine the maximum operating income possible with the expanded plant. \$ x 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