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 Cost of goods sold Gross profit Expenses; Selling expenses $186,000,000 (100,000,000) $86,000,000 $14,000,000 Administrative expenses 11,000,000 Total expenses Operating Income The division of costs between vanable and fixed is as follows (25,000,000) $61,000,000 Cost of goods sold Selling expenses Administrative expenses Variable Fixed 70% 30% 75% 25% 50% 50% Management is considering a plant expansion program for the following year that will permit an increase of $13,020,000 in yearly sales. The expansion will increase fixed costs by $4,000,000 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 fixed costs $6,000,000 39,000,000 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.