Break-Even Sales Under Present and Proposed Conditions Portmann Company, operatino at full capacity, sold 1,000,000 units at a price of $190 per unit during the current year. Its income statement is as follows: The division of costs between variable and fored is as follows: Management is considering a plant expanslon prooram for the following year that will permit an increase of $11,400,000 in yearly sales. The exponsion will increate fixed costs by $3,500,000 but will not affect the relationship between sales and variable costs. 1. Determine the total variable costs and the total fixed costs for the current year. 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. 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 5. Determine the amount of sales (units) that would be necossary under the proposed program to realire the $57, s00,000 of operating income that wa carrent vear. unite 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 income or loss be for the foliowino year? B. Based on the data given, would you recommend accepting the proposal? a. In favor of the proposal because of the reduction in break-even point. b. In favor of the proposal because of the possibility of increasing income from ogerations. c. In favor of the proposal because of the increase in break-even point