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please help, ill like if correct :) Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacty, sold 1,000,000 units at a

please help, ill like if correct :) image text in transcribed
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Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacty, sold 1,000,000 units at a price of $186 per-unit during the current yeac: Its income statement is as follows: The division of costs between variable and fixed is as follows: Management is considenng a plant exparsion program for the following year that wal permit an increase of $13,020,000 in yearfy sales. The expansion will increase fxe costs by $4,500,000 bit will not affect the relationship between sales and variable costs Required: 1. Determine the total yariabin casts and the total foxed 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 roslize the $61,500,000 of operating income that was eamed in the current vear. units 6. Determine tho muximum operating income possible with the expanded plant. s 7. If the proposal is accepted and sales remain at the current level, what wil the operating income or loss be for the following vear? 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 tavor of the proposal because of the possibuity of increasing income from operatiens. c. In fovor of the proposal because of the increase in break-iven point. d. Reject the proposal because if future sales remain at the current ievel, the income from operations will increase. e. Reject the proposal because the sales necossary to maintain the current income from operations would be below the current year sales. Choose the comect

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