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: The division of costs between variable and fixed is as follows: 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 $3,500,000 but will not affect the relationship between sales and variable costs. expansion will increase fixed costs by $3,500,000 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 \$ 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. x units 4. Compute the break-even sales (units) under the proposed program for the following year: x units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $61,800,000 of operating income that was earned in the current year. 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? 5x