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Break-even 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

Break-even 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 Cost of goods sold Gross profit Expenses: Selling expenses Administrative expenses Total expenses Operasing income $188,000,000 (-98,000,000) $90,000,000 $14,000,000 17,800,000 ((31,800,000))/($58,200,000) The division of costs between variable and fixed is as follows: Variable Foxed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program for the following yearthat will permit an increase of $13,160,000 in yearly sales. The expansion will increase fixed costs by $450

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