eBook Show Me How Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $18 Sales $188,000,000 Cost of goods sold (100,000,000) Gross profit $88,000,000 Expenses: Selling expenses $15,000,000 Administrative expenses 13,500,000 Total expenses (28,500,000) Operating income $59,500,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative 50% 50% expenses Management is considering a plant expansion program for the following year that will $3,000,000 but will not affect the relationship between sales and variable costs. Required: Check My Work book Dictionary.com Otherboard Show Me How Required: 1. Determine the total variable costs and the totale costs for current Total variable costs x 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 (unit) under the proposed program for the following year units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the 599.300.000 foring contain the units 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 be for the flower 8. Based on the data given, would you recommend accepting the proposal Previous Check My Work Sow Set for All work saved 00 UN & P W - Goog progress B* O Homepage - South Dictionary.com Otherboard Show 6. Determine the maig come with the 7. If the proposals and weather 3. Based on the data , would you recommend in favor of the propose of the reduction b. In favor of the cause of the orange ctn favor of the proposal because of the increase in Reject the ropesal because it for sales remettere the woman inte Raject the proposal because the scary to maintain the current contramos Choose the correcta Feedback Check My Wor 1. Multiply the percentages for foued and variable costs by the 2. 3. Divide the total variable costs by number of untu 2.b Sale price unit minus variable cost per aconbution margipert Faxed costs divided by unit contribution margin quals beste Fred casts under the proposed program vided by contribution margiulowa Check My Work and go treatire Aed 1/2016