I need help with questions 1 through 6 please

8:59 1 v2.cengagenow.com Chapter 20 Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating 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: Sales $190,000,000 Cost of goods sold (100,000,000) Gross profit $90,000,000 Expenses: Selling expenses $16,000,000 Administrative expenses 16,000,000 Total expenses (32,000,000) Operating income $58,000,000 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 permit an increase of $9,500,000 in yearly sales. The expansion will increase fixed costs by $5,000,000 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 70,000,000 X Total fixed costs 30,000,000 X 2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost 70 X Unit contribution margin 120 X 3. Compute the break-even sales (units) for the current year. 250,000 x units 4. Compute the break-even sales (units) under the proposed program for the following year. 291,667 x units 5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $58,000,000 of operating income that was earned in the current year. 775,000 x units 6. Determine the maximum operating income possible with the expanded plant. $ 59,000,000 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? $ 53,000,000 v Income v 8. Based on the data given, would you recommend accepting the proposal? . In favor of the proposal because of the reduction in break-even point. h In favor of the neonncal hecause of the naccihility of increasing income from 2