I need help with #5
Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $188 per unit 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 incre between sales and variable costs. Required: 1. Determine the total variable costs and the total fixed costs for the current year. 2. Determine (a) the unit varlable 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. Management is considering a plant expansion program for the following year that will permit between sales and variable costs. Required: 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 necessary under the proposed program to x 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 oi 8. 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 operations. c. In favor of the proposal because of the increase in break-even point. d. Reject the proposal because if future sales remain at the current level, the income from operations w e. Reject the proposal because the sales necessary to maintain the current income from operations wou Choose the correct answer. Feadteck