Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of s1s9 por unit during the current year. Its income statement is as follows: The divisian of costs between variable and fixed is as follows: Management is considering a plant expansian program for the following year that will permit an increase of $13,230,000 in yearly sales. The expansion will increase foced 6 the relotionship between sales and variable costs. Required: 1. Determine the total variable costs and the total fived costs for the current year. 2. Datermina (a) the unit variable cost and (b) the unit contribution margin for the current vear: 3. Compute the break-even sales (units) for the current year. 3. Compute the break-even sales (units) for the curtent year. units. 4. Compute the break-even sales (units) under the propoted program for the following vese. units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the 558,200,000 of operating intorne that was earned in the current yeat: units 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 inceme or loss be for the following year? 8. Based on the data given, would you recommend accepting the proposal? a. In fovor of the proposal becouse of the ceduction in break-even point. b. In favor of the proposal because of the possbility of increasing income from operations. c. In favot of the proposal because of the increase in break-even point. d. Reject the proposal because if future sales remain at the current level, the income from operations will increase. e. Reject the proposal because the sales necessary to maintain the current income from oporations would be below the current year sales. Chopse the correct answer. variable costs. ats and the total ficed conts for the current vear