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need questions 6 & 7 answered, everything else is correct Break Even Sales Under Art and Proponed Conditions Portmann Company, sperating at fill capacity sold

need questions 6 & 7 answered, everything else is correct
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Break Even Sales Under Art and Proponed Conditions Portmann Company, sperating at fill capacity sold 2,000,000 units at a price of $189 pent during the current year. It income statement is so Sales $199,000,000 Cost of goods sold (100,000,000 profit $89,000,000 Selling expenses $15,000,000 Administrative pe 15.500,000 Total expenses (10,500,000) Operating income 15.500.000 The door ons between arteando Cost of goods 20 30% Selling met 79 35 Administrative 50 pen Management is considering to program for the tuning that permit 450,000 in early sales. The winnes 3.0.0 not affect the moment Required: 1. Determine the total areas and the old for the current Total arte 09.000.000 41.500.000 2. Determine ait arate cost and the image for the city Unit varate cost 100 2. Velemine athe unit variable cost and (b) the unit contribution margin for the current year Unit variable cost 89 Unit contribution margin 100 3. Compute the break-even sales (units) for the current year. 415,000 units 4. Compute the break even sales (units) under the proposed program for the following year, 445,000 units 5. Determine the amount of sales (undets) that would be necessary under the proposed program to realize the $54,500,000 of operating income that was earned in the current year. 1,030,000 units 6. Determine the maximum operating income possible with the expanded plant 7. Ul the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year Income 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 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 will increase e leject the proposal because the sales necessary to maintain the current income from operations would be below the current years Choose the correct

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