break-even sales under present and proposed conditions ... Your question has been answered! Rate it below. Let us know if you got a helpful answer. Question Break-Even Sales Under Present and Proposed Conditions BeeGee Company, operating at full capacity, sold 150,000 units at a price of $116 per unit during the current year. Its income statement is as follows: Sales $17,400,000 Cost of goods sold 6,000,000 Gross profit $11,400,000 Expenses: Selling expenses $4,000,000 Administrative expenses 3,000,000 Total expenses 7,000,000 Income from operations $4,400,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 80% 20% Selling expenses 75% 25% Administrative expenses 70% 30% Management is considering a plant expansion program for the following year that will permit an increase of $3,625,000 in yearly sales. The expansion will increase fixed costs by $1,000,000 but will not affect the relationship between sales and variable costs.

5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $4,400,000 of income from operations that was earned in the current year. units

6. Determine the maximum income from operations possible with the expanded plant. $

7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? $

8. Based on the data given, would you recommend accepting the proposal?